FRBuyer March 2014

MARCH 2014RETAILER PROFILES u SEAFOOD u ASIAN FOODS u DINNERS/ENTREES

www.frbuyer.com

BEARISH ON 2014

KYLE O’BRIENAND THE WINONA

RYDER CUPPAGE 54

MONICA GELINAS ON WHY DAIRY

PRICES ARE HIGHPAGE 25

NEW ZEROCRATSINDUCTED

AT AFFI-CONPAGE 26

CRAIG ESPELIENON SEAFOOD

MERCHANDISINGPAGE 38

Retailers expect a flat year, but they see gains for smaller vendors. Here’s why.

TAI PEI$45.6 MM

BRAND A$35 MM

BRAND B$25 MM BRAND C

$19 MM

Source: IRI Total US MULO 52 Weeks Ending 12/29/13

GOOD FORTUNE IN EVERY BOX™

TaiPeiFood.com

© 2014 Windsor Foods. All rights reserved

Tai Pei offers the #1 brand of Asian appetizers and snacks to your consumers. From Chicken Potstickers

to Mini Vegetable Spring Rolls to Pork Eggrolls, all available in a variety of sizes, you can discover

good fortune with Tai Pei.

TAI PEI$45.6 MM

BRAND A$35 MM

BRAND B$25 MM BRAND C

$19 MM

Source: IRI Total US MULO 52 Weeks Ending 12/29/13

GOOD FORTUNE IN EVERY BOX™

TaiPeiFood.com

© 2014 Windsor Foods. All rights reserved

Tai Pei offers the #1 brand of Asian appetizers and snacks to your consumers. From Chicken Potstickers

to Mini Vegetable Spring Rolls to Pork Eggrolls, all available in a variety of sizes, you can discover

good fortune with Tai Pei.

4 www.frbuyer.com MARCH 2014

L O G I S T I C S

Teaming Up On ‘Forward Haul?’Pilot program shows that CPGs can efficiently collaborate on vendor-to-retailer shipments. Industrywide use could include frozen and refrigerated foods.

T H E F R O N T E N D

Out Warren’s WayYes, I’ve been inducted into the Distinguished Order of Zerocrats. Here’s how I wound up getting into the frozen food business 26 years ago, and why I’ve stayed.

New ProductsDelicious, bargain-priced, better-for-you, supernatural and sure to fly off the shelf.

Johnny’s Spectacular ColumnGO FOR THE GOLD! NFRA’s Summer Favorites promotion will help you sell lots more ice cream and novelties in June and July. Here’s how.

Retailer ProfilesWhat’s up and what’s ahead for Supervalu and Family Dollar.

Kudos and CommoditiesRetail Patriots wins another industry honor; a look at why dairy prices are so high.

AFFI-CONAll the news that fits about the American Frozen Food Institute’s convention in San Diego.

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22

25

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Bearish On 2014Retailers expect a flat year, but they see gains for smaller vendors. Here’s why.

C O V E R S T O R Y

T H E D A T A B A N K

14 The latest and greatest data, freshly scrubbed by IRI, courtesy of Peter Penguin.

TABLE OF CONTENTS

28

Bessie’s photo credit: © Can Stock Photo Inc. / phototrekkerPeter’s photo credit: © Can Stock Photo Inc. / Clivia

34

42

46

C A T E G O R Y S P O T L I G H T S

Other Fish To FryAs shrimp supplies dwindle, consumers opt for other, less expensive species, driving a 7.8% gain in fish/seafood dollar sales.

Asian Foods Are ‘Hot Trend’As one expert puts it, ‘a new wave of Asian flavors (and menu items) is upon us.’

Dinners Dip 1.9%But manufacturers say cleaner, better-quality meals could bring consumers back to the frozen department.

G E T T I N G P E R S O N A L

Playing the ‘Ryder Cup’Chobani’s Kyle O’Brien actually does play in the Ryder Cup… sort of.

54

50

photo credit: © Can Stock Photo Inc. / alistaircotton

Ready-to-CookCooks upFRESH in

60606060secondsseconds

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OUT WARREN’S WAYOUT WARREN’S WAY

MAKING OF A ZEROCRATYes, I’ve been inducted into the Distinguished Order of Zerocrats. Here’s how I wound up getting into the frozen food business 26 years ago, and why I’ve stayed.

Twenty-six years ago, while I was wandering back from lunch, the head of human

resources at Progressive Grocer (where I was technology editor) yelled to me across the building foyer.

“Warren! I’ve been looking for you! Your wife’s having a baby!”

And so I left my Connecticut of-fices and headed to New York City, arriving a half hour after Sarah was born. (This month, daughter Sarah is heading off to through-hike all 2,185.3 miles of the Ap-palachian Trail.)

‘THE WONDERFUL WORLD’I hold Sarah’s birth as a marker

in my mind, because about three weeks later, I entered what my old friend Hal Lombardi loved to call “The Wonderful World of Frozen Foods.”

“Al Rosenfeld is retiring as the editor and publisher of Frozen Food Age,” my bosses had told me. “In about a year, you’ll be taking over. Learn all you can from him.”

Trouble was, nobody told Al. So when I began asking all sorts of nosy questions about sales revenues,

expenses and editorial plans, he was rather put off. The day came when I asked one too many questions.

“What the hell do you want to know all this stuff for, anyway?”

“Well, if I’m taking over as pub-lisher after you retire, I have to be familiar with it all.”

“WHAT!” He stood and pointed a finger at me, and then, with with-ering disdain: “YOU?”

Okay, so Al and I got off to a rocky start. He didn’t put my name on the masthead for six months, saying he figured I might not last. Al ruled with an iron fist over the magazine staff, and let’s just say that this was the year four of my teeth shattered and needed crowns. Really.

Yet over the years, Al and I be-came close friends, sharing meals and visits often. I cherished his friendship so much that I couldn’t stop crying while trying to get through remarks at his funeral a few years back.

Al was the first member of the Distinguished Order of Zerocrats that I knew. I thought the name of the group, founded by Clarence Birdseye and his friends many years ago, was a real hoot. Members are leaders who promote the image and advancement of the frozen food industry. They do much good work, including raising scholarship funds for those entering the industry. And somehow, the Zerocrats deemed it appropriate to let me join. I’m truly honored.

My wife Toni, perhaps ever-mindful that I was not with her for Sarah’s birth, decided to fly out to San Diego with me this year for my induction into the Order. I’m grate-ful for her support all these years, and for the friendship so many of you have shown me in so many ways. How could I ever leave the frozen food industry?

• • •Frozen & Refrigerated Buyer also

received some honors this past month. Turn to page 25 and read the story about the Retail Patriots.

VOLUME 5 ISSUE 7

Warren ThayerEditor, Managing [email protected] 603-252-0507

Paul ChapaSales Director, Managing [email protected] 913-481-5060

Janet MatzArt [email protected]

Denise Leathers Executive [email protected] 215-489-5090

Contributing Editors:Johnny Harris, Dan Raftery, Mike Friedman, Chef Rick Tarantino, Adrienne Nardeau,and Michael Garry.

EDITORIAL ADVISORY BOARDDan Raftery, Raftery Resource Network

Todd Hale, NielsenBob Anderson, former vp of private label, Wal-Mart

Johnny Harris, Johnny L. Harris Consulting

Skip Shaw, National Frozen & Refrigerated Foods Association

Ellen Schmitz, IRI

Kraig Naasz,American Frozen Food Institute

Corey Rosenbusch,Global Cold Chain Alliance

Published by CT Media Partners,Postmaster: Send address changes to CT Media Partners, PO Box 342, Norwich, VT 05055

U.S. subscriptions $40 per year.


Warren Thayer, [email protected]

Warren and Toni Thayer

T. Marzetti Company 1105 Schrock Rd. P.O. Box 29163 Columbus, OH 43229-0163614-846-2232 Fax 614-842-4186 www.marzetti.com www.sisterschuberts.com

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14-4602_FDBAd2012_fp.pdf 1 September/21/12 2:11 PM


NEW PRODUCTS

Non-Dairy Frozen DessertsAmy’s Kitchen (www.amys.com), Santa Rosa, Calif., launches organic non-dairy frozen desserts made with

organic coconut milk and agave syrup. Prepared using a proprietary technique that delivers the same velvety tex-ture as premium ice cream, the vegan-certified, non-GMO desserts come in four gluten-free flavors: Choco-late, Vanilla, Mint Chocolate Chip, and Mocha Chocolate Chip. The Kosher Pareve treats come in pint-size con-tainers with a $6.99 SRP.

Ice Cream PintsYuengling’s Ice Cream (www.yuenglingsicecream.com), Orwigsburg, Pa., returns to the shelf after a 28-year absence. Produced by Tamaqua, Pa.-based Leiby’s Dairy with all-natural ingredients and lo-cally sourced milk and cream, the “PA Preferred” lineup comes in 10 premium flavors, many of which are Certified Kosher: Vanilla, Chocolate, Chocolate Chip, Black and Tan (chocolate and caramel), Va-nilla Fudge Chunk with Pretzels, Espresso Chocolate Chip, Chocolate Fudge Brownie, Chocolate Marshmallow, Root Beer Float, and Mint Chocolate Chip. SRP is $5.49 to $5.99 per quart.

Flame-Grilled Turkey PattiesChicago-based Hillshire Brands (www.ballparkbrand.com) expands its Ball Park line of frozen flame-grilled

patties with a pair of better-for-you turkey varieties. Free of preservatives and artificial fla-vors, both Flame Grilled Turkey and Flame Grilled Turkey with Cheddar & Jalapeno are an excellent source of protein — and contain 60% less fat than beef

burgers. Ready in minutes, the microwaveable pat-ties come in resealable six-count, 18-ounce pack-ages with an $8.29 SRP.

Flatbread PizzaAtlanta-based Luvo Inc. (www.luvoinc.com), formerly known as LYFE Kitchen, debuts pre-servative-free frozen flatbreads featuring individually hand-stretched flaxseed crusts and non-GMO ingredi-ents. Baked in a wood-fired oven, the line includes six varieties free of artificial ingredients. Lunch/dinner op-tions include Caramelized Onion & Mushroom, Cherry Tomato & Mozzarella and Market Vegetable, all of which come with a packet of Italian Balsamic Glaze for Drizzling. Breakfast varieties include Apple Cinnamon, Mushroom & Egg, and Strawberry. Package sizes range from 5.7 to 7 ounces. Lunch/dinner flavors include a single flatbread; breakfast varieties include two. SRP is $4.99 to $5.99.

Dessert Yogurt with Mix-InsMinneapolis-based Gen-eral Mills (www.yoplait.com) adds Dessert Mix-Ins to its Yoplait Light lineup. Each des-sert includes a serving of low-fat yogurt and a separate pack of toppings, so consumers can add as much or as little as they’d like. Varieties include Key Lime Pie with Graham Cracker Crumbles, Boston Cream Pie with Chocolate Cookie Crumbles, and Coconut Cream Pie with Graham Cracker Crumbles. Each 12-ounce package includes two 6-ounce desserts. SRP is $2.25.

Non-GMO Seasoned VegetablesTommy’s Foods (www.tommysfoods.com), Austin, Texas, rolls out Non-GMO Project-verified seasoned vegeta-bles in BPA- and POFA-free steam bags for safe micro-wave preparation. Also suitable for stove-top cooking,

the 100% natural line includes Four Corners Western Rice, Mix’d Vegetable Medley, Roasted Ca-jun Potatoes, Spinach and Kale, South-western Quinoa, and Roasted Brussels Sprouts, each sea-soned with a unique blend of spices for an added kick. SRP is $2.50 to $3.50 for a 12-ounce bag.

Client: Old Orchard Pub: Frozen & Refrigerated / Aug. 24Agency: Grey Matter Group 616-458-8750 www.greymattergroup.com

Juice. It’s in our DNA.For 30 years Old Orchard has been producing the best tasting, highest quality juices at an affordable price. Our portfolio of unique blends and trend-forward flavors are perfectly suited to the changing needs of today’s consumer. And our vast experience and category insights can help you to profitably advance your business. If you are looking for a partner that offers exceptional products and unmatched service, give us a call.

100% Juice. Juice Blends. Reduced Sugar Juice Cocktails. [email protected] | www.oldorchard.com | 616-887-1745

OldOrchard_Frozen_Refrigerated_KL1.indd 1 8/23/12 8:32 AM


NEW PRODUCTS

Whole Milk Blended YogurtNapa Valley, Calif.-based Wallaby Yogurt Co. (www.wallabyyogurt.com) adds a whole milk variety to its

line of authentically strained organic Greek yogurt. Made with organic milk from

small, pasture-based family farms and then blended

with premium fruit, the slow-cooked collection includes Blueberry, Cherry, Raspberry, Strawberry and Vanilla Bean

flavors. All five are offered in 5.3-ounce cups with a 99-cent SRP.

Vanilla Bean and a sixth flavor, Plain, are also available in 32-ounce packages with a $6.99 SRP.

Ice CreamBoardwalk Frozen Treats (www.boardwalk frozentreats.com), Lafayette, Calif., brings Baskin-Robbins ice cream from the scoop shop to the supermarket. The line includes 14 varieties of packaged ice cream: Chocolate Chip, Chocolate Chip Cookie Dough, Chocolate Fudge, Cookies ‘n Cream, Gold Medal Ribbon, Jamoca Almond Fudge, Mint Chocolate Chip, Nutty Coconut, Old Fashioned Butter Pecan, Pralines ‘n Cream, Peanut Butter ‘n Chocolate, Rocky Road, Vanilla, and Very Berry Strawberry. Two additional flavors, Baseball Nut and Strawberry Shortcake, will be available seasonally. The collection also includes

three chocolate-covered ice cream bars: Jamoca, Mint and World Class Chocolate. Packaged ice cream is offered in 14-ounce containers while the bars come in 9-ounce three-packs. Both carry a $4.29 SRP.

Organic Chocolate SpreadProsperity Organic Foods (www.meltorganic.com),

Boise, Idaho, adds a chocolate variety to its line of better-for-you organic spreads made from fruit- and plant-based oils. Free of gluten, trans fat, dairy, soy, vanillin and nuts, Non-GMO Project-verified Chocolate Melt contains 1 gram of sugar per serving compared to 10 in many popular hazelnut spreads. Rich in Omega 3-ALA and Vitamin A, the kosher spread can also be used for dipping and as a butter alternative in recipes. SRP is $4.99 for 13 ounces.

All-Natural SausageMundelein, Ill.-based Alef Sausage Co. (www.alefsausage.com) introduces a collection of all-natural specialty sausages made with high quality natural meats, freshly ground spices and natural preservatives. Free of artificial colors and flavors, the newcomers include Summer Sausage, Old-Fashioned Dry Salami, Dry Beef Salami and Dry Turkey Salami. Each natural variety is offered in 1-pound chubs and comparably priced against the company’s current assortment. Deli sizes are also available.

Frozen Breakfast SandwichesTyson Foods (www.tyson.com), Springdale, Ark., debuts a protein-rich line of microwaveable frozen breakfast sandwiches. Made with fresh eggs, natural cheeses, and Tyson sausage, ham and chicken, the collection includes Southern Style Chicken Biscuits; Sausage, Egg and Cheese Biscuits; Natural Colby and Monterey Jack Crispy Wrapped Omelets; Ham, Onion and Green Pepper Crispy Wrapped Omelets; Egg, Bacon and Colby Jack Flatbreads; Egg, Sausage and Colby Jack Flatbreads; and Ham, Eggs, Cheese, Onion and Green Pepper Flatbreads. Sausage, Egg & Cheese Biscuits are offered in four-count packages, Chicken Biscuits and Flatbreads come in three-count packages, and Omelets are available in two-count packages. SRP is $5.99.

Gluten-Free NuggetsThe Hain Celestial Group (www.earthsbest.com), Lake Success, N.Y., adds minimally processed gluten-free chicken and veggie nuggets to its all-natural Earth’s Best lineup. They are baked rather than fried (the fully cooked nuggets are coated with gluten-free rice and potato breading) and free of artificial flavors and

colors. Made with chicken raised without antibiotics, Chicken Nuggets contain 50% less fat than regular breaded chicken patties. Veggie nuggets are fortified with iron, zinc and six B vitamins and come in both Broccoli & Cheese and Sweet Potato flavors. All three come in 8-ounce packages with a $5.49 SRP.

©2014 Turkey Hill Dairy

Contact the Turkey Hill Dairy Sales Department at 800-873-2479 Email: [email protected] 2601 River Road, Conestoga, PA 17516 | turkeyhill.com

Cherry Vani l la | Sa l ted Caramel | Vani l la Bean & Chocolate | Coffee | Mint Chocolate Chip | Chocolate | Vani l la Bean

NATURAL RESOURCE

Shoppers pay a premium for good food made with natural ingredients. We’ve put those values forward with the new look of our All Natural Ice Cream. No big words, no long lists. Just a natural sales advantage.

6483-6_Frozen&DairyBuyer.indd 1 2/7/14 10:18 AM


JOHNNY’S COLUMN

3460 John F. Donnelly Dr. • Holland, Michigan 49424 • 616.786.0900 • requestfoods.com

Request Foods is your copacking partner. With 600,000 sq. ft. of cooking, blending, freezing and packing capacity, we are your one-stop resource for R&D and processing. Our team of top culinary chefs creates custom entrées, side dishes, heat ‘n’ serve portions, and a whole lot more - every meal in every size. Give your retail, club store or national brand the consistent quality of Request Foods. We Make Your Brand ... Better.

GO FORTHE GOLD!NFRA’s Summer Favorites promotion will help you sell lots more ice cream and novelties in June and July. Here’s how.

BY JOHNNY HARRIS

If you didn’t get your gold or silver over in Sochi, there’s still time. Okay, so it won’t be an Olympic medal, but

Golden and Silver Penguin awards are still pretty special.

Each year, the National Frozen & Refrigerated Foods Association (www.nfraweb.org) runs its Summer Fa-vorites promotion for ice cream and

novelties in June and July. When I was with Harris Tee-ter, we won the gold several times, and I can tell you that our participation sure moved a lot of cases.

10% LIFTPromoting ice cream and novelties really pays off. You’re selling a high-margin, high-ring product at a time when demand is strong during the warmer weather. Impulse sales can produce even more volume if you are aggres-sive with merchandising. A good Summer Favorites promotion can produce about a 10% lift.

The time to start preparing for this year’s nine-week promotion is now — lin-ing up partners, planning displays and tying in with NFRA’s Summer Favorites consumer coupon and freezer giveaways. If you go to the NFRA Web site, you’ll find much more information and a list of participating brands.

This year, gold and silver medals — I mean penguins — will be awarded in six regions: Northeast, Southeast, East Cen-tral, West Central, Southwest and Pacific/Western. Entries, due Aug. 15, can come from store managers, owners and employ-ees, as well as sales agents, manufacturer JOHNNY HARRIS

http://www.nfraweb.org

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reps and local associations. You can even do a digital entry if you want.

Here are some of my thoughts on how to score a winning entry, as well as do a better job with your ice cream/novelty merchandising. First, get started early. The June Dairy Month and Summer Favorites promo-tions both start June 1, and they’ll be on you before you know it. You should nail down the when, where, what and how of your planning as soon as possible. If you put it off, everything will hit the fan at once and you won’t be as successful. While you’re at it, make sure your vendors work with you so you aren’t having the same promotion at the same time as a competitor down the street. It happens.

Second, consider a store-level shopper contest, like “Free ice cream for a year.” You could promote this with in-store signage and fliers, where the winners get a coupon for a half-gallon per week for a year. It’s a big draw, and doesn’t cost all that much. People get excited about ice cream.

Third, make good use of your endcaps. Tie some of them up for the summer, and do it now. Be careful that your endcaps are ice cream-rated for minus 20 degrees. You don’t want to lose product, or lower its quality for the consumer.

Fourth, I’d suggest changing out your endcaps every two weeks at most. Promote something good and even if it is doing well, swap it out for something else. It will keep things fresh and exciting.

CROSS-PROMOTE! Finally, do some cross-promotion and tie-in with re-lated products. We always ran one or two full-page ads during Summer Favorites, promoting ice cream and novelties. But we’d tie in ideas on how to make a bet-ter sundae, with toppings and all. We’d also advertise cones. Get some of the makers of the complementary products to go in with you on the ads.

So what are you waiting for? Put me back down on your desk and go for the gold! n

Johnny L. Harris, president of Johnny L. Harris Consulting, LLC, Fort Mill, S.C., can be reached at 803-984-2594 or at [email protected].

The time to start preparing for this year’s nine-week promotion is now.

mailto:[email protected]

F A C T O I D S

MID-TIER FROZEN

BY PETER PENGUIN

During the 12 weeks ended Dec. 29, sales of frozen foods in supermarkets, drugstores, mass merchants, military commissaries and select club and dollar stores combined

reached $11.60 billion, a 0.9% increase compared with the same period a year earlier, according to Chicago-based market research firm IRI. However, unit sales were flat at around 3.45 billion, and volume fell 0.5% to 4.78 billion. Volume sold with merchandising support climbed 0.6 points to 38.7%.

For the 52 weeks ended Dec. 29, dollars rose 0.8% to $51.91 billion, but, again, units were flat at 15.33 billion. Volume was down 0.6% to 21.89 billion, and volume sold with merchandising support expanded 1.2 points to 39.4%.

Our chart shows “second-tier” frozen department subcategories (numbers 13 through 25 in terms of dollar volume), including the top brands, for the 12 weeks ended Dec. 29. Data is for the brands as originally trademarked and may not include line extensions.

-5.3%Dollar loss by DiGiorno (to

$236,636,500), the frozen depart-ment’s largest single brand. But

thanks to increased merchandis-ing support and strong sales by

private label, Freschetta and Red Baron — as well as several

smaller brands — the pizza sub-category managed a 1.8% gain.

48.2%Percentage of pot pie volume sold with merchandising sup-

port during the most recent 12 weeks — a whopping 23.7 per-

centage points more than a year ago. Banquet and Boston Market

added the most support and enjoyed some of the highest dol-lar growth. But Blake’s (+184.6%)

was segment’s biggest gainer.

THE DATABANK


MEAT (NO POULTRY) $312,342,300 (1.4) 44,048,500 (0.7) 100,047,200 (5.7)Private Label $86,509,620 (6.0) 11,801,900 (4.2) 27,250,450 (9.5)Casa Di Bertacchi $16,727,320 (0.5) 1,163,108 1.0 6,978,646 1.0 Bubba Burger $14,199,830 (2.4) 1,247,545 (6.0) 2,799,403 (5.3)Steak-umm $11,088,580 (4.0) 1,927,120 (2.7) 1,956,386 (6.4)Cooked Perfect $10,334,200 1.4 1,928,364 14.7 3,418,650 3.8Ball Park $7,945,220 42.5 1,022,388 42.8 1,284,311 45.0 John Soules Foods $7,938,572 3.8 1,331,794 12.6 1,064,778 0.9 Jensen $7,651,809 0.4 378,077 4.6 2,825,470 4.3 Silver T $6,220,094 34.4 349,753 49.2 2,164,017 46.5 Philly Gourmet $5,462,500 (11.5) 799,491 (11.4) 1,320,196 (10.4)

TURKEY/TURKEY SUBSTITUTE $263,793,300 6.1 51,261,150 6.5 78,574,700 4.7 Jennie-O Turkey Store $93,112,710 5.7 17,702,270 11.5 26,532,710 4.3 Private Label $41,829,740 37.6 8,130,703 35.4 11,976,790 24.7 Shady Brook Farms $29,940,740 (10.9) 6,278,766 (6.4) 9,050,625 (8.5)Honeysuckle White $25,119,320 (5.5) 4,774,029 (14.5) 8,143,279 (5.6)Butterball Everyday $17,179,060 18.4 3,379,320 14.9 5,736,257 21.6 Butterball $12,812,460 (4.2) 1,177,968 (6.4) 3,616,674 (4.1)Foster Farms $9,001,516 2.7 1,629,435 (4.6) 2,380,832 6.3 Perdue $8,766,829 (0.2) 2,319,378 (5.2) 2,586,869 (3.4)Jennie-O $5,457,600 2.3 1,196,224 (3.8) 2,311,183 (4.6)Harvestland $3,872,712 (13.7) 859,557 (21.8) 923,356 (21.1)

BREAKFAST HANDHELD $228,018,800 10.2 47,509,660 8.6 52,583,250 9.5 Jimmy Dean $98,628,290 5.8 14,666,530 4.9 23,328,760 6.0 Jimmy Dean Delights $29,595,690 33.1 4,266,555 28.7 6,135,198 27.7 Odoms Tennessee Pride $21,208,710 1.6 4,023,221 (3.8) 5,098,980 2.7 Kellogg’s Special K $13,840,860 39.1 2,363,945 34.2 2,658,401 37.6 Private Label $12,339,060 (13.5) 3,615,284 (8.9) 3,108,659 (13.7)Hot Pockets $7,805,725 10.3 2,902,315 (5.5) 2,185,585 14.5 Marie Callender’s $5,838,327 * 1,492,863 * 1,095,137 *IHOP at Home $5,518,381 60.7 1,093,570 47.8 1,184,885 66.9 Wght Wtchrs Smart Ones Smart Beginnings $3,397,503 23.4 1,064,110 5.7 618,783 22.9 Lean Pockets $3,089,434 (14.7) 1,474,362 (25.8) 828,916 (10.5)

PIES $206,858,900 (1.2) 51,174,650 (3.9) 92,348,130 (1.8)Marie Callender’s $72,259,210 1.1 15,324,180 (1.8) 31,035,010 4.8 Edwards $44,464,840 12.6 8,562,802 15.1 16,195,790 15.7 Mrs. Smith’s $31,700,780 (19.0) 8,518,597 (20.4) 18,064,120 (21.6)Sara Lee $28,729,910 (3.0) 7,541,449 (0.6) 16,616,490 (1.3)Edwards Singles $6,493,389 5.6 2,598,766 6.7 901,629 6.7 Claim Jumper $5,136,437 1.3 912,160 3.1 2,357,513 2.6 Banquet $4,419,535 (14.2) 5,111,699 (12.5) 2,236,368 (12.5)Private Label $3,791,368 70.6 858,711 62.2 1,426,235 87.3 Claim Jumper Restaurant $3,390,007 9.4 591,744 12.3 1,320,991 14.5 Plush Pippin Ultimate $870,311 (12.3) 219,330 (12.4) 548,325 (12.4)

FRSH BKD BREAD/ROLLS/BISCUITS $202,286,800 (0.3) 72,764,770 0.1 69,496,470 1.1 Private Label $45,124,710 4.7 19,711,310 3.6 19,366,800 5.7 Sister Schubert’s $42,845,730 (2.6) 12,243,070 0.1 13,986,230 (0.9)New York $41,099,600 2.6 14,104,310 1.8 10,615,390 2.9 Pepperidge Farm $23,460,920 (8.7) 8,898,887 (4.5) 6,138,721 (6.0)Coles $13,737,150 0.8 5,972,242 1.3 4,854,039 0.6 Pillsbury Grands $8,391,898 (1.5) 2,481,468 0.4 5,092,366 3.5 Mary B’s $3,731,569 (12.3) 1,260,324 (19.5) 2,129,671 (7.3)Furlani $2,898,900 51.1 1,369,742 17.1 1,045,668 58.5 Mamma Bella $2,672,224 (13.4) 870,446 (10.9) 643,443 (10.3)Joseph Campione $2,015,241 (19.7) 826,440 (19.8) 579,210 (19.9)

WAFFLES $199,643,000 1.1 71,808,660 3.9 67,319,970 2.0 Kellogg’s Eggo $106,142,900 2.1 33,247,940 4.8 37,025,270 2.6 Private Label $36,221,180 0.6 17,288,440 3.6 15,265,130 3.1 Kellogg’s Eggo Nutri Grain $17,537,080 (12.0) 5,121,049 (12.1) 4,543,624 (12.1)Kellogg’s Eggo Thick & Fluffy $9,903,610 12.6 3,675,685 12.8 2,886,879 15.7 Van’s $7,231,393 8.4 2,437,822 13.0 1,321,710 13.6 Kellogg’s Eggo Wafflers $4,868,006 (6.3) 2,005,220 (3.0) 1,341,091 (3.0)Aunt Jemima $4,024,819 (14.5) 2,159,638 (16.6) 1,661,866 (16.5)

Chicken burgers from the #1 chicken sausage brand*, now in the freezer case.

Drive freezer sales with al fresco!

Samples available now! 1st ship February 2014 • Also look for al fresco frozen meatballs coming this spring!

The chicken sausage segment is growing 3x faster than the overall dinner sausage category –proof that consumers are seeking delicious and healthy alternatives to help them live and eat better.

Call Chris Reisner at (617) 889-1600 x258 or email [email protected] to find out more.

*AC Nielsen Grocery Unit Volume 52 wk thru 09.28.13

NEW

11 .19.13 vers ion: MECH 13 -ALF-0704

ChickenGri l lersFP

Size7 , 4/c

ad:CDcw:NOst:LL

bdm:RRpm:LBtm:PO

t:8.125x10.875”l:7.625x10.375”b:8.375x11.125”

CMYKbuild c=0,m=24,y=94,k=0




CP19190_13-ALF-0704 FY14 Froz Trade Print_sz7.indd 1 12/9/13 11:36 AM


Kellogg’s Eggo Minis $3,111,265 11.2 1,243,731 14.6 847,354 14.6 Kellogg’s Eggo Seasons $2,629,065 (17.9) 1,145,409 (20.0) 701,563 (20.0)Kashi $2,009,633 (5.5) 589,352 (5.5) 372,058 (5.5)

MIXED VEGETABLES $190,622,700 6.5 107,726,000 8.9 112,876,300 7.0 Private Label $79,119,920 5.1 48,610,640 6.8 55,309,270 5.6 Birds Eye Steamfresh $35,256,600 7.8 20,265,940 9.4 15,589,050 9.1 Birds Eye $18,004,030 0.7 6,596,999 2.0 12,161,290 4.4 Pictsweet $7,204,151 (0.6) 3,854,668 (5.5) 4,452,295 (1.5)Green Giant $5,144,958 (41.7) 3,085,260 (35.3) 2,177,020 (31.7)Flav-R-Pac $4,220,952 1.3 909,684 (0.4) 2,602,866 3.6 Green Giant Simply Steam $3,353,805 18.3 2,643,725 20.7 1,412,681 29.5 Green Giant Antioxidant Blend $3,078,459 37.7 1,982,967 36.5 1,012,263 37.6 Pictsweet All Natural $2,947,029 3.5 1,522,665 (1.7) 2,202,575 1.2Pictsweet Deluxe Steamables $2,898,508 9.5 1,926,136 4.4 1,217,077 4.5

FRUIT $190,264,000 11.9 43,346,910 7.3 60,563,420 10.2 Private Label $122,696,900 11.9 28,351,240 7.9 36,574,110 9.6 Dole $24,092,220 11.6 4,467,078 7.6 8,577,336 11.9 Townsend Farms $6,042,401 18.6 729,993 24.3 2,189,979 24.3 Wyman’s $4,854,742 22.7 1,138,573 19.4 1,379,896 21.1 Wyman’s of Maine $3,784,851 24.6 418,246 24.6 1,254,739 24.6 Goya $3,189,240 2.3 1,289,370 (0.2) 1,161,793 (0.3)Well-Pict $2,601,621 62.3 290,524 62.3 1,452,620 62.3 Dole Ready-Cut Fruit $2,504,443 (20.1) 566,168 (11.2) 1,030,788 (29.3)Welch’s $1,669,944 45.7 406,617 35.2 342,688 34.2Sunrise Growers $1,003,542 (65.6) 226,016 (64.3) 306,024 (68.2)

BREAKFAST ENTREES $166,250,800 2.7 59,772,990 7.1 49,041,790 0.6 Jimmy Dean Breakfast Bowls $28,783,020 13.1 11,681,090 10.0 5,212,329 9.2 Private Label $24,363,130 10.6 10,794,190 14.3 9,797,477 2.0 Jimmy Dean $23,543,830 (1.0) 3,483,801 (7.3) 5,994,838 (1.4)Aunt Jemima $15,954,340 (11.8) 7,435,261 (14.4) 4,618,202 (13.4)De Wafelbakkers $11,786,990 6.2 3,600,543 7.2 6,571,181 6.6 Kellogg’s Eggo $6,169,774 (4.6) 2,299,956 (1.9) 2,287,921 (2.0)Wght Wtchrs Smart Ones Smart Beginnings $5,255,870 103.6 1,976,836 106.5 1,134,173 192.0 Kellogg’s Eggo Minis $4,962,292 (2.6) 1,708,318 (2.4) 1,608,624 (1.6)Jimmy Dean Delights $4,112,089 11.6 1,688,535 10.1 738,734 10.1Weight Watchers Smart Ones $4,054,369 (31.5) 1,518,865 (30.8) 533,283 (28.1)

POT PIES $131,405,100 7.3 83,063,140 13.6 53,976,100 11.5 Marie Callender’s $71,093,810 4.3 24,017,320 7.9 26,337,570 7.9 Banquet $44,978,380 12.5 53,513,380 17.9 23,412,110 17.9 Stouffer’s Signature Classics $2,908,621 (5.5) 1,106,426 (3.0) 691,516 (3.0)Stouffer’s $2,690,251 (7.2) 920,492 (5.7) 920,489 (5.7)Blake’s $1,756,448 184.6 407,035 222.4 335,612 106.3 Willow Tree $1,687,186 (12.6) 306,196 (20.5) 438,681 (23.0)Amy’s $1,452,896 8.0 418,931 13.0 197,616 13.0 Swanson $1,425,106 (18.2) 1,462,779 (19.0) 639,966 (19.0)Boston Market $1,399,436 16.3 488,747 21.3 488,747 21.3 Private Label $533,477 57.2 141,544 100.2 183,773 82.2

SAUSAGE $121,427,200 8.1 49,634,290 2.5 36,461,620 5.6 Banquet Brown ‘N Serve $35,870,040 0.2 25,983,830 1.2 11,735,410 3.2 Private Label $20,724,040 8.9 4,066,967 1.5 6,292,111 5.4 Jimmy Dean $19,383,940 16.1 4,654,069 2.2 3,997,840 0.2 Purnell Old Folks $5,878,083 11.1 734,416 1.8 1,809,722 3.5 Farmer John $4,999,425 7.6 3,798,814 6.3 1,904,751 6.1 Jones Golden Brown $4,744,824 4.1 2,267,885 4.8 937,554 2.6 Williams $4,127,702 100.2 715,484 109.8 1,570,971 112.3 Hormel Little Sizzler $3,600,776 6.8 2,232,462 8.7 1,674,346 8.7 Ole South $2,413,907 75.1 528,726 85.0 967,873 82.5Johnsonville $1,623,825 (38.6) 239,746 (40.5) 479,487 (40.6)

WHIP TOPPINGS $108,383,900 (3.3) 80,758,450 (3.8) 46,101,050 (3.2)Kraft Cool Whip $80,954,160 (2.5) 60,476,180 (3.1) 33,466,620 (2.7)Private Label $25,341,820 (4.2) 19,600,980 (4.1) 11,896,300 (4.8)Kraft Cool Whip Frosting $1,231,000 (45.2) 470,895 (47.4) 311,968 (47.4)* Product has been in distribution for less than one year.

6.7Length in inches of the scarf knit-ted by Briton Susie Hewer — while running the 2013 London Marathon (talk about multi-tasking)! Despite

the distraction, she finished the event in 5 hours, 54 minutes.

-10.3%Dollar loss by prepared vegetables

(to $78,202,670), the largest fro-zen subcategory to register a dou-ble-digit decrease. On the bright

side, sales of plain vegetables, which totaled more than $640.8 million across subcategories dur-

ing the most recent 12 weeks, rose 3.1%, more than making up for the

decline.

$5,838,327Dollar sales racked up by new-

comer Marie Callender’s in the fro-zen handheld breakfast segment

— one of the best performances by a product in distribution less than a year. Its success combined with double-digit gains by five of the remaining top 10 brands helped

drive the subcategory’s 10.2% gain.

26,000Number of miles the average shop-ping cart will travel during its life-

time, according to USA Today.

4Number of top five frozen sub-categories — which, together,

represent well over a third of total frozen department sales — that

saw dollar sales expand during the most recent 12 weeks. The only

loser: single-serve dinners/entrees (-3.8%).

25Number of seconds a person — or, more accurately, a person’s head

— can still hear and respond after a beheading. Dr. Gabriel Beaurieux

of France made the discovery in 1905 during an experiment with a

condemned prisoner.

THE DATABANK

2014 IDDBA 4/C • “Camp Foodie” • 7” X 10” Frozen & Dairy Buyer Ad Beltrame Leffler Advertising • (317) 916-9930 • 02.10.14 • S2GA010114

Register Now • Seminars • Show Planner • Hotels • Exhibits • Show & Sell Center International Dairy-Deli-Bakery Association

P.O. Box 5528 • Madison, WI 53705 • call 608.310.5000 • fax 608.238.6330 • visit www.iddba.org

Peyton ManningWhat It Takes to Be a Champion

Steve ForbesLeadership From the Ancient World to Today

Harry BalzerEating Patterns

in America

The Big Adventure. You won’t want to miss the best Show in the dairy, deli, bakery, and foodservice business. Camp Foodie is a 3-day adventure in the Mile-High City of Denver, complete with a roster of attendees including the best food buyers, merchandisers, and marketers in the industry; all gathered to network and learn about new products, trends, and new business opportunities.

Set Your Sights High. Pack up your gear and your best hiking shoes as you make your way west at an elevation of 5,280 feet to explore over 1,800 booths, 3 days of top speakers, a 10,000 sq. ft. Show & Sell merchandising pavilion, and other industry events; while you network and exchange ideas with nearly 9,000 of your fellow campers.

Come Celebrate. We’re celebrating 50 years in business by lining up some great business, food, sports, and political speakers to share their knowledge on deli and bakery research, food and consumption trends, emerging technologies, social media, marketing trends, consumer behavior, merchandising ideas, and leadership.

IDDBA’s Show & Sell Center 2014. This idea center delivers peak merchandising ideas, creative sets, new

themes, & signage – the creative thought starters you need to help create a better selling environment in your stores. Complete with onsite merchandising advice and an Idea and Photo CD; your whole team will benefit from the creativity and imagination of retail merchandisers in a real store setting.

Capt. Richard PhillipsSteering Your Ship

Through Rough Waters

Gary VaynerchukRiding the Hashtag in

Social Media Marketing

Harold LloydFishin’ for Sales?

Better Change Lures!

Remarks by Former Secretary of StateHillary Rodham Clinton

Bobby FlayFrom High School

Drop-Out to Culinary Star

JOHNNY’S COLUMN

F A C T O I D S

MID-TIER REFRIGERATED

BY BESSIE BOVINE

Sales of dairy products in supermarkets, drugstores, mass merchants, military commissaries and select club and dollar stores combined topped $17.86 billion during the 12 weeks ended Dec.

29, a 2.0% increase compared with the same period a year ago, according to Chicago-based market research firm IRI. Units rose 1.5% to 6.75 billion, and volume edged up 0.1% to 54.87 billion. Percentage of volume sold with merchandising support climbed 1 point to 34.0%.

In the deli, dollars shot up 6.5% to $5.32 billion, while units jumped 1.6% to 1.46 billion. Volume expanded 2.2% to 1.39 billion, while volume sold with merchandising support fell 2.7 points to 34.6%.

For the 52 weeks ended Dec. 29, dairy sales grew 2.9% to $73.71 billion, while units increased 1.6% to 28.34 billion. Volume rose 1.2% to 240.74 billion, and volume sold with merchandising support climbed 0.7 points to 37.5%.

In the deli, dollars were up 4.0% to $22.91 billion and units grew 1.4% to 6.55 billion. Volume expanded 1.9% to 6.16 billion, while volume sold with merchandising support dropped 2.2 points to 36.4%.

Our chart shows “second-tier” refrigerated department subcategories (numbers 13 through 25 in terms of dollar volume), including the top brands, for the 12 weeks ended Dec. 29. Data is for the brands as originally trademarked and may not include line extensions.

63.8%Dollar gain by dinner/sandwich

rolls/croissants ($1,414,977), larg-est by a refrigerated subcategory with at least $1 million in sales. Top seller private label (+39.4%) drove much of the increase, but

it got some help from newcomer Bisquick Bakery, already the

segment’s No. 3.

36Cloves of garlic consumed by world record holder Patrick Bertoletti in just one minute. He completed the

stinky feat on Jan. 14, 2012.

THE DATABANK


COFFEE CREAMER $509,389,700 8.5 177,560,600 8.1 319,772,800 11.5 Nestlé Coffee Mate $283,697,200 10.7 90,863,350 11.1 176,211,200 15.8 International Delight $117,661,200 14.7 40,714,090 11.9 73,756,190 16.9 Private Label $40,551,490 0.0 16,697,160 (1.2) 31,976,700 0.1 Bailey’s $28,538,200 (0.4) 13,103,380 (2.6) 15,424,640 1.6 Nestlé Coffee Mate Natural Bliss $11,233,220 4.0 4,929,898 20.6 4,935,277 6.7 International Delight Cold Stone $9,994,386 77.2 4,127,051 94.3 5,832,879 72.6 Intnl. Delight Coffee House Inspirations $4,351,755 (68.1) 1,694,356 (65.6) 2,674,046 (68.5)Silk $3,605,660 0.2 1,637,364 1.5 1,956,832 1.9 Mocha Mix $2,382,278 (10.3) 692,609 (4.9) 1,881,392 (12.3)So Delicious $2,165,164 65.1 878,927 56.8 878,927 56.8

FRANKFURTERS $462,290,600 (1.8) 182,359,300 (2.6) 188,098,300 (3.0)Ball Park $100,671,200 (1.1) 26,209,600 (1.9) 29,625,220 (2.8)Oscar Mayer $77,703,040 (2.2) 25,614,670 4.0 27,363,110 1.8 Bar-S $66,063,050 1.3 56,284,870 (0.3) 50,842,950 (0.5)Hebrew National $32,973,400 3.1 6,998,633 2.4 6,288,222 4.0 Nathan’s Famous $32,309,530 (1.8) 7,457,231 (1.0) 7,353,979 (1.3)Private Label $17,216,170 (0.9) 6,723,421 (10.7) 8,241,626 (6.6)Oscar Mayer Selects $14,732,240 (5.9) 4,026,319 (4.0) 3,925,424 (3.8)Gwaltney $10,239,400 (26.9) 6,477,199 (35.3) 6,961,101 (33.2)Eckrich $5,094,450 8.3 2,638,210 10.9 2,532,554 8.4Sabrett $4,551,783 (18.9) 883,860 (21.9) 1,083,839 (19.4)

MARGARINE/SPREADS $448,141,500 (5.2) 206,885,200 (6.4) 268,026,800 (6.7)Shedd’s Country Crock $98,840,920 (1.6) 33,062,430 (3.6) 70,530,630 (5.1)I Can’t Believe It’s Not Butter $62,222,090 (7.2) 18,890,730 (8.2) 21,981,400 (7.9)Blue Bonnet $51,454,340 (6.3) 40,947,140 (7.7) 51,629,680 (6.1)Land O’Lakes $46,122,670 5.6 17,860,930 4.3 13,099,840 3.3 Smart Balance $42,624,530 (10.5) 13,009,270 (12.4) 14,374,040 (9.7)Imperial $26,323,330 (0.8) 26,290,200 (0.0) 29,056,190 (1.0)Private Label $22,729,090 (9.2) 14,163,270 (10.9) 20,609,550 (10.8)Parkay $16,925,310 (8.1) 8,602,539 (9.5) 9,315,175 (9.1)I Can’t Believe It’s Not Butter Light $16,780,440 (8.5) 5,605,521 (9.2) 5,926,909 (9.7)Brummel & Brown $10,199,430 (9.3) 3,392,092 (12.1) 3,249,822 (11.9)

PRCSSD/IMITATION CHEESE-SLICES $420,808,700 (1.4) 131,460,800 (4.3) 121,567,300 (2.8)Kraft Singles $149,351,600 (7.5) 41,266,400 (13.1) 40,320,320 (11.6)Private Label $118,486,800 (7.8) 40,283,110 (8.6) 38,762,370 (8.2)Kraft $30,642,160 58.0 9,177,964 23.2 9,312,001 59.1 Kraft Deli Deluxe $30,021,160 (3.4) 5,754,370 (2.6) 5,358,787 (2.6)Borden $27,831,300 2.2 10,771,110 3.0 8,792,830 2.6 Kraft Velveeta $26,890,130 29.6 10,232,910 33.6 8,285,599 32.0 Crystal Farms $5,504,001 (1.3) 1,675,120 2.1 1,580,322 1.3 Land O’Lakes $5,404,826 (6.6) 896,931 (7.5) 1,121,564 (5.0)Sandwich Mate $3,849,990 3.4 3,476,819 6.2 2,050,179 6.4 Borden Singles Sensations $1,762,113 (18.0) 879,898 (17.6) 439,949 (17.6)

BREAKFAST SAUSAGE/HAM $420,081,300 7.9 127,596,100 (0.9) 116,780,400 (1.2)Jimmy Dean $144,024,600 0.3 40,321,420 (14.1) 38,354,400 (13.0)Johnsonville $41,835,150 18.2 12,626,410 8.8 9,493,749 8.4 Private Label $33,447,910 17.4 12,169,360 11.7 10,047,780 11.7 Bob Evans $30,741,480 8.9 9,294,927 5.1 8,729,942 4.9 Odom’s Tennessee Pride $26,845,410 (0.9) 7,169,565 (11.2) 8,022,251 (13.9)Swaggerty $14,122,810 80.1 2,583,412 79.0 4,767,018 61.4 Owens $8,922,793 24.8 2,768,528 23.8 2,983,933 23.5 Bob Evans Farm Fresh Goodness $6,937,523 11.4 2,238,165 3.5 1,943,334 3.1Eckrich Smok-Y $6,840,137 3.3 2,596,670 1.0 1,347,152 1.0 Jennie-O Turkey Store $5,452,337 (4.5) 1,640,203 4.7 1,564,408 7.0

NATURAL SLICES $375,741,600 6.5 116,912,400 7.5 62,237,960 6.6 Private Label $153,863,600 6.7 52,334,460 7.1 28,448,410 6.8 Sargento $89,232,100 1.2 29,289,620 2.1 13,778,760 1.7 Kraft $15,390,880 68.7 5,357,292 82.1 2,620,058 66.0 Tillamook $12,613,290 (7.2) 2,445,816 (10.3) 2,003,388 (7.1)Kraft Big Slice $11,732,340 (19.5) 4,388,102 (17.8) 2,183,677 (15.8)Belgioioso $8,311,740 3.3 1,383,799 9.4 1,430,567 1.6

19www.frbuyer.comMARCH 2014

14.1Percentage points separating bacon dollar (+14.6%) and unit

(+0.5%) sales gains during the most recent 12 weeks. A similar disparity occurred in the breakfast sausage/

ham subcategory where dollar sales rose 7.9% but unit sales fell 0.9%. Rising commodity prices

deserve much of the blame.

13.8%Dollar gain by soft cream cheese/

spreads (to $174,179,100), one of the largest refrigerated subcat-egories to post a double-digit

increase. Its success helped offset a 4.9% loss by cream cheese bricks

(to $222,609,300), still the most popular — and most heavily mer-

chandised — cream cheese format.

$1,445,607Dollar sales racked up by Go Veggie processed/imitation

cheese-shredded during the most recent 12 weeks, one of the best

performances by a product in dis-tribution less than a year. Already the subcategory’s No. 3, its success

highlights growing demand for dairy- and lactose-free cheeses.

13Number of his own digits moun-

taineer Major Michael Lane donated to the U.K.’s National

Army Museum to commemorate his 1976 expedition to Mount

Everest, during which he suffered severe frostbite. Although the

eight toes were in bad shape, the five fingers were reportedly put on

display.

939.9%Dollar gain by private label ready-

to-drink coffee (to $931,494), largest by a store brand refriger-ated product. But it wasn’t the

segment’s biggest gainer: No. 7 Silk saw its sales jump 39,139.5%. Total RTD coffee sales shot up 53.6%,

highest among subcategories with at least $5 million in sales.

Crystal Farms $6,539,814 23.0 2,171,038 33.3 1,069,371 28.0 Sargento Natural Blends $5,574,109 7.1 1,972,566 10.4 924,739 10.4 Kraft Cracker Barrel $5,213,377 22.7 1,646,974 24.8 720,551 24.8 Land O’Lakes $4,355,745 (6.2) 1,074,766 (6.1) 501,062 (5.8)

FLVRD MILK/EGGNOG/BUTTERMILK $350,114,600 1.7 133,746,600 2.0 410,512,400 1.1 Private Label $91,030,300 (1.1) 36,691,510 (0.1) 142,717,700 1.9 TruMoo $31,534,070 492.4 10,168,790 433.3 49,292,860 505.0 Southern Comfort $15,174,380 1.6 5,400,054 0.2 10,800,110 0.2 Borden $14,185,260 5.1 5,616,790 3.5 13,803,210 3.5 Hood $13,894,580 8.9 4,206,265 8.6 10,495,400 6.5 Hiland $11,103,610 74.5 4,971,827 74.3 13,973,730 78.9 Prairie Farms $10,387,850 11.1 4,742,972 10.9 13,660,150 7.9 Horizon Organic $7,923,048 3.8 1,902,819 4.1 6,322,821 4.4 Darigold $5,861,565 1.2 2,441,099 4.5 5,460,701 (1.0)Kemps $4,116,004 7.3 1,733,249 2.0 4,785,665 0.3

MEAT/CHEESE/CRACKER/DESSERT $313,646,600 3.6 147,216,600 4.8 57,524,110 3.7 Lunchables $130,604,000 898.5 64,315,890 1,553.7 24,621,610 886.2 Oscar Mayer Lunchables $60,802,530 (68.8) 33,279,240 (66.0) 10,228,540 (72.5)Hormel $30,128,540 2.2 3,229,904 4.4 4,350,677 (1.4)Lunchables Uploaded $28,492,970 * 8,266,959 * 7,805,851 *Armour Lunch Makers $27,839,870 6.7 25,848,930 7.6 4,670,244 (0.1)Hormel Party Tray $13,838,520 0.3 1,131,962 (0.3) 1,980,934 (0.3)Armour Lunch Makers Cracker Crunchers $5,262,237 (17.7) 3,732,630 (8.0) 1,295,389 (22.9)Private Label $4,606,125 1.1 451,490 (15.4) 597,688 (11.6)Armour Lunch Makers Loco Nachos $2,357,062 2.2 2,304,552 11.5 446,622 (3.4)Oscar Mayer $536,266 (85.0) 196,341 (87.1) 67,074 (87.0)

SOUR CREAM $286,286,400 0.2 157,357,600 0.2 157,113,700 0.0 Daisy $121,696,400 5.9 57,513,110 7.0 60,318,240 7.5 Private Label $78,589,460 (1.8) 53,703,730 (1.4) 53,586,430 (1.8)Breakstone’s $23,545,150 (8.8) 13,277,070 (7.6) 12,168,430 (9.3)Knudsen Hampshire $9,955,176 (0.2) 4,460,552 0.8 4,654,772 (0.8)Kraft Simply $5,148,948 (14.0) 3,507,643 (16.9) 3,053,245 (22.0)Hood $2,996,206 6.2 1,781,891 3.3 1,725,417 (0.2)Tillamook $2,716,072 (7.9) 1,368,021 (6.9) 1,419,559 (6.8)Kemps $2,519,949 (6.9) 1,479,728 (10.6) 1,380,753 (10.9)Friendship $2,229,218 8.5 1,445,556 13.6 1,398,230 12.8 Darigold $1,918,377 (8.7) 1,044,494 (3.3) 1,169,188 (5.9)

KEFIR/MILK SUBSTITUTES/SOYMILK $261,657,500 19.8 80,253,420 19.2 311,528,200 17.5 Silk Pure Almond $70,295,320 41.4 20,486,660 37.9 87,162,000 41.1 Blue Diamond Almond Breeze $56,239,820 39.2 17,978,900 38.5 73,289,550 39.0 Silk $46,750,740 (15.3) 13,176,950 (15.9) 55,735,110 (18.0)Private Label $25,788,130 19.9 9,691,292 19.4 37,317,520 18.6 Lifeway $14,657,630 47.6 4,520,444 53.2 8,426,775 52.4 Silk Light $12,557,080 (28.6) 3,772,522 (30.8) 15,090,090 (30.8)Silk Pure Coconut $7,356,959 55.9 2,156,127 54.4 8,624,508 54.4 8th Continent $4,656,157 (21.7) 1,436,475 (24.6) 5,745,900 (24.6)So Delicious $4,098,620 19.4 1,303,343 17.3 4,414,698 18.5 Meyenberg $3,229,278 5.7 735,630 2.9 1,534,170 3.7

DAIRY CREAM/HALF & HALF $233,269,100 2.3 100,325,500 1.9 174,786,400 2.5 Private Label $113,712,800 0.7 52,094,450 1.5 98,597,760 1.3 Land O’Lakes $42,266,360 4.5 16,706,540 3.1 30,508,110 7.0 Hood $8,179,891 3.9 3,101,737 1.1 4,732,326 3.3 Organic Valley $5,978,845 15.2 1,955,649 11.9 2,863,706 18.1 Horizon Organic $5,725,514 18.8 2,018,911 18.4 2,836,702 14.8 Garelick Farms $3,890,217 (6.9) 1,433,167 (9.8) 2,098,441 (10.3)Upstate Farms $3,334,883 (0.1) 1,153,160 0.4 2,069,213 0.8 Nestlé $3,255,917 8.2 2,101,790 (1.1) 998,350 (1.1)Darigold $2,745,889 2.8 1,108,168 5.2 2,227,276 6.8 Cacique $2,520,847 1.3 730,419 4.4 690,677 4.1

COTTAGE CHEESE $223,876,900 (0.0) 85,615,580 (0.9) 103,160,400 (2.5)Private Label $85,783,960 (2.8) 34,030,560 (4.1) 47,313,850 (5.0)* Product has been in distribution for less than one year.

F A C T O I D S

3rd-TIER FROZEN

BY PETER PENGUIN

Here are the top five brands in frozen subcategories just below the mid-tier on our previous pages. Data, once again, is for the 12 weeks ended Dec. 29, according

to IRI, the Chicago-based research firm. Channels include supermarkets, drugstores, mass merchants, military commissaries and select club and dollar stores. Data is for the brands as originally trademarked and may not include line extensions. We’ve left out a few subcategories that are normally covered in different issues throughout the year so we could focus on ones that rarely get attention on our pages.

76.4%Dollar increase by private label

cheesecake, the largest gain in the subcategory, which was down by 16.0%. Atlanta Cheesecake was another standout, up by 33.3%.

86 YearsLongest marriage, according to the Guinness Book of World Records.

It was between Herbert and Zelmyra Fisher, wed May 13, 1924 in North Carolina. Herbert Fisher died 86 years, nine months and 16

days later, at the age of 105.

17.4% Dollar growth by Turkey Hill, fast-est growing brand in the ice cream subcategory. Dollars and volume both posted gains above 25.0%.

8,026Number of teddy bears owned

by Jackie Miley of Hill City, S.D., housed in the Teddy Bear

Town museum at the base of Mt. Rushmore. Her original goal was to have as many teddy bears as there

are people in Hill City (780). Things have apparently gotten out

of hand.

THE DATABANK


FZ/RFG MEAT SUBSTITUTES $81,618,670 3.1 20,926,960 2.5 14,998,670 4.7 Morningstar Farms $32,773,670 10.8 8,359,834 6.7 6,429,365 14.5 Morningstar Farms Grillers $9,611,210 3.1 2,309,311 2.4 1,690,304 5.2 Boca $6,306,160 (25.6) 1,810,491 (16.8) 1,187,289 (30.8)Tofurky $4,062,881 16.7 902,970 17.0 687,882 18.0Gardein $3,870,399 42.5 898,285 41.1 657,420 45.6 Morningstar Farms Chik Patties $3,636,716 (8.0) 932,310 (7.4) 582,694 (7.4)

FZ PIE/PASTRY SHELLS $81,225,120 0.4 32,175,460 (1.3) 24,933,560 (1.8)Private Label $29,149,140 (5.0) 13,869,470 (5.2) 11,129,420 (6.2)Pillsbury Pet Ritz $22,841,220 5.4 9,587,890 0.7 6,779,735 0.8 Pepperidge Farm $13,726,200 1.6 3,017,880 0.7 3,002,923 (1.9)Marie Callender’s $6,211,059 11.2 2,016,802 19.7 2,016,802 19.7 Athens Foods $3,048,403 (1.0) 1,531,893 (5.3) 181,989 (5.3)

FZ CORN $78,785,980 (4.5) 50,952,310 (3.3) 54,346,480 (2.8)Private Label $33,665,590 1.5 22,634,570 2.5 27,401,600 1.0 Birds Eye Steamfresh $13,475,190 4.5 10,697,110 7.7 8,373,774 7.9 Birds Eye $7,560,147 10.9 4,822,032 15.7 5,225,090 16.0 Birds Eye C & W $3,454,069 (3.5) 1,402,458 (4.4) 1,441,968 (4.7)Birds Eye Steamfrsh Premm Selcts $2,471,611 (7.7) 1,269,986 (4.4) 952,489 (4.4)

FZ PRPD VEGETABLE (SAUCE/CRUMBS) $78,202,670 (10.3) 46,037,360 (6.2) 33,384,250 (7.5)Green Giant Valley Fresh Steamrs $25,532,220 (10.5) 12,813,360 (12.6) 10,854,990 (8.7)Green Giant Steamers $20,251,600 * 15,321,040 * 9,526,276 *Green Giant $7,887,441 (74.6) 5,576,812 (71.6) 3,585,150 (73.9)Birds Eye Steamfrsh Chfs Favorts $7,237,878 10.5 3,671,027 11.6 2,657,845 13.3 Birds Eye Steamfresh $2,771,692 (36.9) 1,414,556 (37.5) 1,031,989 (37.5)

FZ SIDE DISHES $77,517,020 (3.8) 29,389,560 (5.3) 25,273,170 (4.8)TGI Friday’s $14,115,550 (13.1) 2,636,587 (11.9) 2,340,363 (15.1)Birds Eye Steamfresh $11,294,330 12.0 6,827,062 16.1 4,408,543 15.6 Stouffer’s Simple Dishes $5,514,136 1,487.6 2,317,110 1,630.3 1,555,872 1,759.0 Ore Ida Steam N Mash $5,441,256 (0.1) 1,759,123 (3.2) 2,638,684 (3.2)Private Label $4,295,813 5.0 2,022,668 (0.8) 1,731,539 6.5

FZ OTHER PLAIN VEGETABLES $68,934,180 9.2 34,680,620 6.5 32,768,950 6.3 Private Label $22,629,380 6.6 14,077,270 3.8 12,563,080 3.0 Birds Eye Steamfrsh Premm Selcts $4,049,825 1.6 2,027,975 3.2 1,520,981 3.2 Pictsweet All Natural $3,939,718 (2.7) 2,348,594 (6.5) 2,511,695 (5.7)Birds Eye Steamfresh $3,922,745 23.0 1,625,165 14.8 1,024,035 10.5 Pictsweet Deluxe Steamables $3,841,111 10.1 1,571,669 4.5 866,484 4.9

FZ PEAS $67,037,490 (1.2) 42,630,900 (0.4) 42,777,610 (1.3)Private Label $28,555,130 (1.4) 19,898,940 0.1 21,475,090 (1.3)Birds Eye Steamfresh $9,041,608 (0.6) 6,730,298 1.0 5,060,759 1.4 Birds Eye $5,641,685 10.5 3,704,850 14.8 3,260,509 7.3 Pictsweet All Natural $2,812,634 6.6 1,769,543 (1.3) 1,836,972 (0.1)Pictsweet $2,469,019 (10.7) 1,255,582 (15.0) 1,602,608 (12.4)

FZ YOGURT/TOFU $63,330,490 1.6 17,238,450 (0.0) 39,514,210 4.1 Private Label $12,437,620 5.7 4,052,077 8.5 13,363,310 9.6 Kemps $6,151,312 27.1 1,689,999 29.4 5,132,117 31.0 Healthy Choice $5,640,310 4.3 1,603,576 (11.0) 1,490,568 6.6 Ben & Jerry’s $4,714,847 (0.5) 1,290,039 (12.2) 1,197,854 (1.1)Ben & Jerry’s Froyo $4,440,466 3.8 1,111,860 3.9 1,111,860 3.9

FZ OTHER BREAKFAST FOOD $61,290,050 (3.3) 23,376,690 (5.6) 19,351,390 (1.2)Pillsbury Toaster Strudel $45,735,200 (2.8) 18,518,920 (2.8) 15,390,450 (1.6)Pillsbury Toaster Scrambles $5,404,243 (4.7) 2,035,614 (7.7) 1,272,259 (7.7)Jimmy Dean $2,110,915 352.7 196,153 49.3 537,998 773.6Kellogg’s Eggo Frnch Toastr Stcks $1,574,648 (13.7) 597,688 (12.4) 474,445 (12.4)Weight Wtchrs Smrt Ones Mrnn Exp $1,462,375 (26.5) 535,160 (26.3) 267,580 (26.3)

FZ SWEET GOODS - NO CHEESECAKES $54,163,580 (3.8) 13,154,990 4.4 14,207,990 (2.9)Pepperidge Farm $14,017,820 (0.4) 4,357,972 4.4 4,704,610 3.0 Sara Lee $7,070,227 (17.1) 1,703,648 (20.3) 1,455,627 (16.5)Delizza $6,811,923 (13.8) 1,435,093 (11.2) 1,296,362 (11.4)Private Label $5,380,044 (17.1) 1,045,300 0.4 1,099,065 (11.3)

* Product has been in distribution for less than one year.

Patents and patents pending. Note: Product photography is a simulation of a retail environment and is not meant to imply endorsement by or for any brand or manufacturer.

©2014 Trion Industries, Inc. 297 Laird Street, Wilkes-Barre, PA 18702-6997Phone 570-824-1000 l Fax 570-823-4080 Toll-Free In U.S.A. 800-444-4665 www.TrionOnline.com

Part of the Trion® Shelf Works® System of Cooler and Storewide Merchandising Solutions.

Built-in Manual Feed

Optional Label/Flag Holder

Adjustable Width

Breakaway Lengths

Built-in Handles

Built-in Ventilation

Paddle Extenders

Sidewall Extenders

Proudly Made in the U.S.A.

Trion® Cooler Merchandising

AMT™ Adjustable Merchandising Tray

Organize Chaos, Increase SalesDesigned for yogurts; dips; spreads; puddings, gelatins and snacks; ice cream and sherbet; instant soup cups; microwave single-serves; food-to-go offerings, tubs, bottles and other difficult to organize products.■ Small AMT adjusts from 211/16" to 35/16" wide for

4-6 ounce yogurt cups and similar small products.■ Medium AMT adjusts from 35/16" to 315/16" wide for

5-6 ounce greek yogurt cups and mid-range offerings. ■ Large AMT adjusts from 4" to 45/8" wide for tub, pint,

11/2 pint, ice cream and large containers.■ Width adjusts in 1/8" increments and locks in place.

Two breakaways allow easy adjustment in the field from standard 22" length to 20" and 18."

■ Built-in manual feed allows trouble-free forwarding and facing of products for increased sales and profits.

■ Trays lift out for rear restocking and proper rotation.■ Durable, easy-clean plastic construction for long-life,

even under heavy use and in harsh environments.■ Optional plain-paper label, sign and flag holder

provides a protected home for product and price information and improves promotional opportunities.


RETAILER PROFILE

ON THE ROAD TO RECOVERY?Although sales were down slightly, Supervalu’s profitability rose during the third quarter, thanks to a vari-ety of cost-cutting initiatives — and a strong performance by the com-pany’s Save-A-Lot division.

Less than a year after shedding five supermarket banners, a leaner, meaner Supervalu

reported $31 million in net earn-ings during the third quarter — up from $16 million a year earlier. The bad news is revenue was down from about $4.05 billion a year ago to $4.01 billion — lower than most analysts had predicted — thanks to decreased sales in two of the company’s three divisions: whole-sale grocery (-3.7%) and traditional supermarkets (-2.6%).

According to CEO Sam Dun-can, who’s helmed the Eden Prai-rie, Minn.-based company for just

more than a year, rising profitability stems primarily from a variety of cost-cutting initiatives, including improved supply chain efficiencies. “I am pleased with the accomplish-ments we made within our operations this quarter,” he remarked. But he admitted “we still have work to do to

improve our sales trajectory.”Although total revenue was down,

sales at Supervalu’s Save-A-Lot stores jumped 2.6% during the third quarter to $996 million. Same-store sales were up 1.7% networkwide — the first time since the fourth quarter of fiscal 2012. But corporate same-store sales shot up 5.4%, marking the fifth straight quar-ter of sequential improvement.

In a third-quarter earnings call Jan. 9 (transcript provided by Seek-ing Alpha, www.seekingalpha.com), Duncan attributes Save-A-Lot’s success to renewed emphasis on meat and produce, including a fresh-cut meat program rolling out to corporate stores and a produce initiative that includes more rigor-ous screening standards and assort-

ments better-tailored to each region.“In Save-A-Lot, the key to our op-

eration and our customers is produce and meat. And that’s where we lost the overall store business... for quite a few years.” He adds, “In my mind, the center store is just an add-on convenience for our customers. Our first priority was and still is produce and meat.”

Duncan also addressed cuts to the SNAP program, which the company estimates created a 1% net adverse sales impact at Save-a-Lot. Fortunate-ly, “Customers are largely offsetting lower EBT levels with cash purchases.”

Through the balance of 2014 and into fiscal 2015, Supervalu plans to

open new Save-a-Lots at a faster rate than in the past, Duncan reports. While the bulk of those new stores will be corporate locations, it’s also seeking licensees.

The company doesn’t plan to add traditional supermarkets, although it will continue to improve “in-store conditions” in existing locations, par-ticularly meat and produce layouts in older stores. It will also address prob-lems with product mix. “As our mer-chandising teams... reviewed sets and space allocation, it became quite clear that we have a number of areas where we do not have enough linear feet devoted to the assortment, meaning key items are missing,” says Duncan. The first two categories it will tackle are pet and baby care — both of which will welcome 25 to 50 new items in the coming months — though other categories are expected to follow.

PL IS GROWINGThe company also plans to expand

its private label presence, which Duncan says is already running ahead of internal goals for penetration. “Our private brand penetration has increased 75 basis points year-to-date compared to last year, and we know we still have a significant opportunity in front of us.”

Duncan also announced a rebrand-ing campaign that will synchronize each banner’s messaging across various platforms: in-store signage,

Supervalu’s private label program, which encompasses more than 20 different brands, is already ahead of internal goals for sales penetration.

Thanks to the banner’s stellar performance recently, Supervalu hopes to speed up new Save-A-Lot store openings in the next year.


weekly ads, customer e-mails, mobile devices, websites, etc. “Our customer messaging has been disjointed and, often times, confusing. But when complete, these banners will have a much more clearly defined identity,” he says.

Supervalu will also continue working to improve price perception at its retail banners, focusing attention on the top 250 items. Although the company backed off from some of the dramatic price cuts it offered in second quar-ter advertising, which resulted in reduced margins, Dun-can says customers have responded well to markdowns in price-sensitive categories such as milk and bread.

Although he acknowledges the retail banners still need work, “it’s incredibly amazing what we’ve accomplished (in one year).”

Unfortunately, he continues, progress in the whole-sale division hasn’t been nearly as swift. Losses there stemmed primarily from the departure of two major cus-tomers earlier in the year and the government shutdown, which temporarily halted sales in military commissaries. Without those reversals, sales for the quarter would’ve been up. Although Supervalu continues to pursue new customers, Duncan says the process often takes months, if not years — so patience is key.

CONSUMABLES UP 4.7%AT FAMILY DOLLARStrong growth in refrigerated and frozen foods, HBC and tobacco spark uptick in last quarter. Chain shifts to EDLP strategy.

Thanks to the addition of 126 new stores during the period, net sales at Matthews, N.C.-based Family Dollar rose 3.2% during the first quarter

of 2014 to $2.5 billion. However, same-store sales fell 2.8% as the chain’s core lower-income customers faced continued economic chal-lenges, including a reduc-tion in government assis-tance. As a result, both the number of customer trans-actions and transaction size were down slightly.

In a Jan. 9 earnings call (transcript provided by Seeking Alpha, www.seekingalpha.com), Family Dollar chairman and CEO Howard Levin says that although the company has expanded its market share and improved customer satisfaction, it strayed from its core strategy: serving the value-conscious consumer. “This year, we plan to invest significantly to provide our customers with greater every-day value and further enhance our strong price image.”

Although it won’t eliminate its use of circulars, Levin says the company will reduce ad frequency to once or twice a month and return to an EDLP strategy. “Our unique customer is absolutely living paycheck-to-pay-check,” he explains, “(so) standing for an everyday low price proposition is critically important... We have to offer her competitive prices on those consumables she’s buying every day.” He adds that, while everyone likes a sale, “It’s very difficult to have an EDLP strategy and promote every week.”

MORE CHANGE COMINGAfter adding more than 1,000 new items and significantly modifying store layouts and fixtures during the sum-mer of 2012, the company hit the pause button in 2013 to allow both managers and customers to adjust to all the changes. Eighteen months later, it’s ready to start up again, says Levine, citing plans to “refine and enhance” Family Dollar’s assortment of consumables, sales of which increased 4.7% during the first quarter, thanks mostly to strong growth in refrigerated and frozen foods, health and beauty care and tobacco. However, comparable store consumables sales were down for the first time in years as the company anniversaried strong growth from last year.

“We plan to expand (consumables) categories where customer demand has been very strong and reduce space in categories where customer response has not met expec-tations,” says Levine. The company also hopes to improve adjacencies, making it easier for customers to shop.

The chain will roll out new private label SKUs this year, adding a few hundred to the 500 or so it introduced dur-ing the fourth quarter. “Our private brand program has been one of the bright spots in our strategy,” says Levine, citing increased penetration and “tremendous strides” in packaging and quality. “We’re working to make sure we have an easy comparison for the consumer when she walks into our store... so she can see very clearly what her actual savings is.”

While the compa-ny continues to reno-vate existing stores, a process it hopes to complete by 2016, it is also pursuing an aggressive expansion program, with plans to open another 525 stores this year. “We believe we can double the size of our chain, and we remain committed to 5% to 7% an-nual square footage

growth,” says Levine. However, the company will open more stores under a build-to-suit financing structure, which frees up more capital but still allows competitive lease rates. n

Family Dollar plans to open 525 new stores this year, with an eye toward eventually doubling the size of the chain.

RETAILER PROFILE

RETAIL PATRIOTS EVENTWINS HONORS AGAINAnnual honors program recognizing those going ‘beyond the call of duty’ to support our military is finalist in international competition.

BY PAUL CHAPA

For the second year in a row, Frozen & Refrigerated Buyer’s

Retail Patriots event has been selected as a finalist in FOLIO: + min’s FAME Awards competition.

The event received honors this year in the “Social Good/Charity Event” category. Winners and honorable mentions will be recognized during an awards breakfast April 2 at the Yale Club in New York City.

FIERCELY COMPETITIVE“The international awards competition is fiercely compet-itive and placing as a finalist is a major accomplishment,” said Johnny Harris, president of Johnny L. Harris Con-sulting and a contributing editor at the magazine.

Frozen & Refrigerated Buyer’s Retail Patriots event, held for the past five years during the National Frozen

& Refrigerated Foods Association convention, honors retailers that go “above and beyond” in support of our troops and veterans.

“The Retail Patriots event recognizes and encourages food retailers and others allied to the trade to go the extra mile in serving our heroes,” according to Harris. “During World War II, 40% of Americans were serving in uniform. Now that number is only 1%, and the remaining 99% of us should find a way to thank and support our military, vets and their families for their sacrifice and service.”

Last year for the first time, two non-retailers were also honored, spreading recognition wider throughout the industry. Multiple sponsors supported the event, which is run under the auspices of FISH (Food Industry Serving Heroes), a 501c3 corporation. Through tax-de-ductible donations from sponsors and supporters in the industry, FISH fulfills its mission to provide active duty military, veterans and their families with wheelchairs, service dogs, financial literacy programs and jobs within the food industry. Proceeds are also used to continue the Retail Patriots event during the NFRA conven-tion, raising awareness of the plight of injured veterans and building participation in “Heroes Dinners” held throughout the country.

For details on how your company can participate, contact: Johnny Harris at 803-984-2594 or [email protected], or Gary Spinazze at 952-237-0590 or [email protected]. n

WHY ARE DAIRYPRICES SO HIGH?BY DENNIS COLLINS AND MONICA GELINAS

After years of rela-tive sluggishness, dairy prices have

spiked to near-record levels with milk, butter and cheese up by 30% from late November through early February. This has come at a time when dairy prices tend to fall. Historically, manu-facturers have taken advantage of the post-holiday lull in demand to rebuild their stocks — but not this year so far.

What’s happened? First, record-high milk prices occurred in tandem with substantially lower feed costs. These two factors typically spur an increase in dairy herd size and milk supply, but not so far this year. Early signs suggest that dairy producers may be increasing their capacity, but

expanding the number of producing cows will take time. Second, on the back of static milk supply, there’s a

tremendous upsurge in ex-port demand for American dairy products, especially from China.

China’s growing need for imported dairy products began with the 2008 mela-mine disaster, which ended in child deaths and a broad mistrust of domestically produced dairy products.

Over the past year, China’s domes-tic dairy production also suffered a significant setback.

While there should be some relief in United States prices as dairy pro-ducers expand their herds and milk production, dairy prices will remain high this year, especially in the first half. Uncertainties about the effects of the California drought have every-one on edge.

Retailers can expect less of an im-mediate effect in the premium and natural categories. Higher-quality items from smaller producers have

gained traction to manage risk and command premium from consumers. Some buyers may replace one cheese with a similar but less-expensive op-tion. If prices do spike significantly, manufacturers may explore ingredi-ent substitutions. RELUCTANT TO REBUILDWhile cheese and butter manufac-turers are making slightly more prod-uct than last year, they are reluctant to rebuild depleted stocks at histori-cally high prices. Additionally, ice cream production ranges from 10% to 28% lower than a year ago. Yogurt production has shown the strongest growth so far. n

Dennis Collins is a director at Trilat-eral, Inc., where he provides purchas-ing and risk management advisory services and training for food manu-facturers, importers and processors. He is in partnership with Monica Gelinas, founder of Grit Work LLC, building sustainable supply chain strategies in natural and specialty food (www.trilatinc.com, and www.gritwork.com).

Monica Gelinas


UPFRONT

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AFFI-CON 2014

Julia Wells, l., gets a hug from Leslie Sarasin, former president of AFFI and now president of FMI. Wells, of Picts-weet, was inducted into the Frozen Food Hall of Fame.

From l., Frank Plant, San Diego Refrigerated Services; Jana Brandt and Greg Brandt, Nor-Am Cold Storage; Don Schoenl, Nordic Logistics & Warehousing; Corey Rosenbusch, Global Cold Chain Alliance; Mike Henningsen, Henningsen Cold Storage.

From l., David Yanda, new chairman of the AFFI board; Bobby Ray, long-time industry leader and for-mer AFFI convention chairman; and Jeff Varcoe of the Schwan Food Co., immediate past chairman of AFFI.

Inductees into the Distinguished Order of Zerocrats included, from l., Greg Brandt of Nor-Am Cold Storage; Richard Loesel of Creative Supply Chain Solutions; Warren Thayer, Frozen & Refrigerated Buyer; and David Yanda, Lakeside Foods. Giving the oath was AFFI Atty. Gary Kushner, flanked by Skip Shaw of NFRA, l., and AFFI’s Kraig Naasz.

Kraig Naasz, president of AFFI, welcomes attendees at dinner honoring Frozen Food Hall of Fame inductee Julia Wells, and new mem-bers of the Distinguished Order of Zerocrats.

Russ Borstelman, l., with Kevin Tackett, both of Interstate Cold Storage, on the show floor at AFFI-CON.

PHOTOS COURTESY OF AFFI

1,300+ ATTEND AFFI-CON

More than 1,300 delegates gathered in San Diego Feb.22-26 for the 2014 American Frozen Food Institute (AFFI) Frozen Food Convention (AFFI-CON).

During the group’s annual meeting at the convention, Dave Yanda of Lakeside Foods was elected chairman. Also elected: Paul Bakus, Nestlé USA, vice chairman; and Jeff Varcoe, The Schwan Food Company, immediate past chairman.

Nine board members were elected to three-year terms: Bob Ashmun, National Frozen Foods; Denny Belcas-tro, Hillshire Brands; Paul DiGenova, Bonduelle North America; Stan Fire-stone, Firestone Pacific Foods; Andrew Loucks, The Kellogg Co.; Tom Madden, Rite Stuff Foods; David Moore, Superior Foods; Paul Palmby, Seneca Foods; and Mark Schiller, Pinnacle Foods.

Julia Wells of The Pictsweet Company was inducted into the Frozen Food Hall of Fame at a dinner on Feb. 22. Six new members of the Distinguished Order of Zerocrats were also honored: Paul Bakus, Nestlé USA; Greg Brandt, Nor-Am Cold Storage; Richard Loesel, Creative Supply Chain Solutions; Tom Poe, Crystal Distribution Services; War-ren Thayer, Frozen & Refrigerated Buyer; and David Yanda, Lakeside Foods.

Next year’s convention will be Feb. 21-25 in Anaheim, Calif. For information, go to www.affi.org/afficon.

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Contact Paul Chapa, sales director, at 913-481-5060 or [email protected].

Retailers expect a flat year, but they see gains for smaller vendors. Here’s why. BY WARREN THAYER

Frozen and refrigerated food buyers see flat sales in the year ahead, with a changing product mix, a subtle shift to hi-lo pricing and more opportunities

for local and niche brands. Extensive interviews with buyers nationwide also

turned up frustration over a lack of useful consumer

insights from vendor partners, as well as concerns about competition from new channels of distribution and un-stable commodity prices.

I’ve organized their responses to a series of questions, below. Many thanks to the retailers who took the time to share their insights.

Dollars & Units Flat or DownMost retailers surveyed expect frozen food dollars to be flat or slightly down in the next year, with units and volume continuing their modest decline. A few buyers say their frozen dollars will climb as much as 4% this year, but they were in the minority.

In the 52 weeks ended Dec. 29, 2013, frozen dollars gained 0.8%, while units were off by .03% and volume dipped by 0.6%, according to IRI, the Chicago-based market research firm. The data is for supermarkets, drug-stores, mass market retailers, military commissaries and select club and dollar retail chains nationwide.

Major frozen segments including dinners/entrees, pizza, novelties and appetizers have all turned in negative numbers lately, and change does not appear to be on the horizon. Entrees in some cases are being helped along with new flavors, sizes, better-for-you profiles and ethnic flair. Hopefully something will catch fire soon. Signifi-cant innovation in any of the lagging segments always has potential to bring sales back quickly.

Several retailers had praise for consumer promotion by the National Frozen & Refrigerated Foods Association, but added that changing consumer attitudes and behav-ior takes time.

NFRA also drew kudos for its work promoting the dairy department, where there’s slightly more optimism.

BEARISH ON 2014

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COVER STORY

Value channels have been adding frozen and refrigerated foods aggressively, taking share away from traditional supermarkets.

In the 52 weeks ended Dec. 29, 2013, cross-channel dollars rose by 2.9%, units by 1.6% and volume by 1.2%. There’s a mixed bag here. Commodity increases are clearly driving dollars. At the same time, steady declines continue in milk and juices.

The dairy department’s saving grace has been yogurt — up by 7.6%, 3.2% and 3.4% in dollars, units and volume, respectively, in the past year. In the most recent 12 weeks, the pace of yogurt’s growth has been accelerating. Greek yogurt continues to gain space on the shelf, often taking it from milk, juice and butter/margarine.

But some buyers insist that the yogurt category is over-SKUd, with too much duplication and too many brands. Pruning slow-movers judiciously could give more facings to items that really need it, and minimize the need to cut into adjacent cat-egories for more space.

Retailers in markets where there are few controls on milk prices say price compe-tition is fierce, further depressing sales figures. In one region, gallon milk has been averaging $1.87 on the shelf.

There are other wild cards in this blend: cheese block items have hit an all-time high as commodity pricing has soared. Almond milk and coconut milk are picking up steam. And unusual weather fluctuations have more than a few retailers worried about commodities this year.

Shifting to Hi-Lo?Most everybody uses a blend of hi-lo and EDLP, but we’re seeing slight shifts in some corners to more hi-lo. This is largely a competitive reaction to dollar stores and other low-price channels that are beefing up their sales in frozen and dairy foods.

Independents seem to be feeling more heat than chains, and are moving in this direction more rapidly. But as one major chain put it with a telling choice of phrase, “We’re being more judicious, and can’t promote everything at hot prices. To protect margins, we get into pseudo-EDLP programs.”

It’s also possible we’ll see more hi-lo promotion in areas of the country where baby boomers are retiring on fixed incomes. Their numbers are huge, and they’ll be looking

for deals. That will be good news for Aldi and similar low-price retailers.

With the tough business environment, retailers report some amazingly deep deals coming out at random times, but overall there hasn’t been much change in promo-tion depth or frequency.

Both retailers and vendors are focusing more attention on where promotion money goes and how effective it is in producing a return. There’s perhaps as much debate on promotion efficiency as there is over total dollars spent.

Commodity price fluctuation is a fac-tor here, especially this year in some dairy categories. When ingredient prices go up, some manufacturers pull back on promo-tion rather than take a price increase. But for whatever reason, some retailers expect tighter promotion budgets from manufac-turers this year.

“Manufacturers can become more profit-able by raising prices or by cutting expenses, people or promotion funding,” says a major

wholesaler. “To my experience, I see manufacturers cut-ting funding first, and until a brand manager sees a dip in sales, he won’t do anything about it.”

And a West coast retailer notes that “Some manufac-

turers are cutting back because a financial person has gotten control of promotion. They seem to think it’s not really necessary to sell product.”

SKUS Flat, But Mix Changing SKU counts in frozen and refrigerated foods should stay flat in 2014, as display space constraints force retailers to stay with “one-in, one-out” policies.

When retailers do remodels, however, they typically give a greater percentage of overall space to frozen and refrigerated foods because of their profitability. Trouble is, capital expenditures have been off among some key

BEARISH ON 2014

VALUE CHANNEL GAINING • The value channel, including club stores, dollar stores and mass merchants, are adding stores at a much faster rate than supermarkets and other channels, which might explain why supermarket buyers are feeling bearish. At last fall’s National Frozen & Refrigerated Foods Association convention, Nielsen’s Todd Hale noted that cross-channel frozen and refrigerated unit sales remained essentially flat between 2010 and 2013, starting and ending at 44.8 billion. But dollars rose from $113.7 billion to $126.2 billion in that period.

Hale, Nielsen’s senior vp of consumer and shopper insights, suggested that retailers include high-spend products in cross-category promotions that build shopping baskets. Those with the highest average dollars spent per purchase occasion include unprepared meat/poultry/seafood, frozen prepared foods, pizza/snacks, cheese and deli dressings/salads/prepared foods.


Better-for-you foods, including gluten free, non-GMO, and organic have been gaining more and more traction with consumers.

retailers, so their remodels are down. “Space is the biggest constraint. If you don’t have

enough freezer doors, you can’t add a lot of new items. You need a major equipment change to make that hap-pen,” says one retailer. And so far, nobody has invented a crowbar to stretch display cases.

While SKU counts may stay flat, the merchan-dise mix is defi-nitely changing. As one wholesaler put it, “Not that many years ago, a 12-foot yogurt display was big. Now, 24 feet is small.” Declin-ing categories are getting less space, yielding to better-for-you, ethnic, non-GMO and bold-flavored items in categories that are growing.

Many retailers and manufacturers agree that product innovation can be stifled by this lack of space. “New items are the lifeblood of the department,” says a frozen buyer. “But to get in more of the better-for-you items you have to get rid of a lot of stuff. You’re asked to take a risk on an in-novative new item by getting rid of a SKU that is perform-ing pretty well.”

Regional chains and independents consistently say they are looking for more specialty and local items to build differentiation for their stores. They say they’re tired of trying to duke it out on price with major chains on leading national brands. Some say the national brands tend to rest on their laurels, and expect business to come to them. (And yes, all this is good news for smaller brands.)

Useful Consumer Insights, Anybody?Says one major retailer: “There are two sides to every story, but I feel like we aren’t getting much in the way of useful consumer information from ven-dors. There’s no added value. Vendors of course are trying to sell cases, and so are we. But you often get such slanted presentations that it’s not helpful. I’m not saying they’re lying necessarily, but if we want to get a feel for category performance trends, we’ll get presentations from three or four vendors.

We figure if we listen to three or four versions of ‘the truth,’ the real truth is more likely to come out. Vendors should be a good steward of the retailer’s time and effort, and make solid recommendations backed up with real

numbers. Sometimes it takes a lot to follow their stories, and you feel like, ‘Come on, now. We’re just talking about one category, and one line. It shouldn’t be all that complicated.’”

He’s far from alone. The lack of useful con-sumer insights is one of the most consistent criticism retailers have about their vendor partners. Piles of data on consumer demograph-ics and buying habits rarely seem to add up to a credible plan for action, they say.

“Vendors seem to think it’s necessary to recite a pile of BS to us, and then when our eyes glaze over, they slip out the order blank,” says one frustrated buyer. “They don’t research our stores or our strategies to come up with meaningful tactics.”

Well, I’ve been hearing this for many years. For their part, vendors tell me that retailers expect them to be psychic, and remove all risk by giving them winning plays that are guar-anteed to score. Both sides agree that “figures can lie, and liars can figure.” The most common complaint? Bar charts that are out of alignment, skewing results in the manufacturer’s favor.

So allow me to recommend How to Lie with Statistics, by Darrell Huff. A couple of buyers told me the best-selling book has helped them detect what I call “nonsense boiled in vegetable oil” in some vendors’ presentations. When I checked, you could get it for under $3 on Amazon.

The Law of the JungleRetailers say their biggest concern remains tied to compe-tition — both from traditional retailers and from chan-nels that historically have not carried much in the way of

food. As these new channels enter frozen and dairy foods, they can be very aggressive on price promo-tion to attract new shoppers. That puts further margin squeeze on supermarkets.

“Competi-tion is really rough,” notes a supermarket

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COVER STORY

Buyers say that vendors do a poor job providing consumer information they can actually use to make better merchandising decisions and drive more sales.

Retailers are concerned about energy costs of display cases, and how much they contribute to the carbon footprint. Will corporate decisions on new display cases affect packout, for example?

frozen food buyer. “It’s not just the existing retailers, but the new channels that are expanding so rapidly. We con-tinue to see more supercenters, dollar stores, drugstores and Aldi-types, selling more and more food. New chan-nels must think it’s easy to sell food. Next we’ll probably start seeing C-stores in Best Buys.”

Retailers also keep a sharp eye out for home delivery services, including everything from Schwan’s to FreshDi-rect to Google.

This wholesaler notes that drugstores are becoming

stronger competitors in frozen and refrigerated foods, “But they don’t have a lot of space so they will stick with the best sellers. There is also the possibility that a chain like CVS, which just dropped tobacco, will differenti-ate by going super-healthy. They could carry Amy’s and Kashi, and go with natural, organic and gluten-free. The most trusted people in the stores are the pharmacists, and they could recommend food products that might help with health issues, such as celiac disease. It’ll be interesting to see how this plays out.”

Of course, major supermarket chains are expanding into new turf with both new stores and distribution cent-ers. To cite just one example, consider North Texas. Win-Co is coming to Dallas/Fort Worth, joining Walmart,

Kroger has had great luck promoting its gasoline savings card as another way to differentiate on price. Margin squeeze is a problem for everybody, though.

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Kroger, Tom Thumb, Sams Club, Albertsons, Costco, SuperTarget, HEB, Brookshire, Fiesta Mart, Whole Foods, Aldi, Dollar General, Family Dollar, Save-A-Lot and… well, you get the idea.

As new retailers and new formats enter markets, retail-ers already in those markets find themselves confronting unfamiliar tactics and strategies being used against them. Yes, one more thing to add to the “to do” list.

What Keeps You Up at Night?Besides competition, frozen and refrigerated buyers say there is plenty to keep them awake at night. Insurance and health costs worry everybody, but when it comes to specifics tied to their jobs, buyers cite — in no particular order — commodity costs, energy costs, margin squeeze, recalls and SKU rationalization/product mix.

Droughts, floods and freezes — both in the United States and abroad — have played havoc with com-modity imports and exports. Further, de-mand for all types of foods by the burgeon-ing middle class in China, for example, is very much a factor in prices here.

Dairy pricing is going through some major spikes. (See separate story, page 25.) And sometimes it’s not just an is-sue with price, but supply. Some retailers say they’ve been short on products such as Greek yogurt and organic milk. Net-net: Predicting prices, and planning, is practically impossible in many categories.

Most buyers say they are not involved directly in the issue of energy costs for frozen and refrigerated display cases. But they worry about how quickly these costs are rising, and what the corner-office bean counters might do about it someday down the line.

Will refrigerated/frozen display space allocations dwindle over time? Will technology bring more shelf-sta-ble foods? How might decisions made by the engineering department affect display capacity? If our departments would look and sell better with re-lamping, will head-quarters spend the money?

Margin squeeze is a perennial problem, especially as the Aldi’s of the world proliferate. With so many players in a given market, all using different pricing strategies ranging from EDLP to hi-lo with loss-leader discounts, sticking with a coherent strategy is not for the faint of heart.

It’s the sense of most retailers surveyed that the num-

ber of manufacturer recalls is climbing each year. Food allergies are skyrocketing, testing is more frequent and the difficult economy has some manufacturers cutting corners in either time or materials, causing serious prob-lems. Buyers say discussions about recalls, and exactly who pays for exactly what, are becoming more common during sales calls.

Finally, there’s the issue of SKU rationalization and product mix. Many major chains carry one or two brands and a private label in each category, and let it go at that. They achieve price breaks and get better holding power on the shelf for popular items since they can give them more facings.

To differentiate, regional and independent retailers with less display space and less buying power are shift-ing — with some trepidation — to more local and niche brands. This can mean less in the way of market develop-ment funds and funny money from the big boys. But it can also build more customer loyalty and take smaller re-tailers out of the impossible-to-win price battle over the leading brands.

One retailer summed things up best with this: “Everything should go along pretty well as long as infla-tion stays moderate and the economy keeps chugging along. Unemployment and the big macro factors are still

a problem in the economy. As long as there are not any big surprises, we expect this to be a challenging year, just like the last five or six have been.”

Private LabelThe big brands were awakened a few years back when pri-vate label was growing at such a rapid clip. They’ve fought back hard, and slowed the acceleration.

Most buyers expect private label to follow the same trends it has for the last several years, growing at a meas-ured pace. With an already-significant base in many cat-egories, you can’t expect significant percentage changes year-over-year.

But once again, we’re seeing moves to different product mixes, or at least different tiers. Buyers say they expect to see the fastest growth within private label coming, in order, from upscale, value and national brand equivalent. One observer singled out SuperTarget for doing an espe-cially good job with upscale private label.

Retailers say they are using private label more and more to create competitive differentiation, since trying to be the low-price leader for the top brands is difficult if not

‘Pure and Wholesome’ is the way Safeway puts it in this store. The consumer trend toward these attributes continues to pick up speed.

impossible. This is also helping bring about renewed interest in local and niche brands, as we’ve seen.

Broker Role ChangingBrokers are still important in the mix, since small- and mid-size vendors can’t have a skilled staff with local market knowledge everywhere. Good brokers always have “the elevator presentation” ready — like what you say when the CEO gets on the elevator and you have 10 stories to make your entire pitch, says one observer.

However, they need to become not only more efficient but better at showing where they add value, or else they’ll be seen as just another expense to overhead. And even though the market is very competitive and dollars are tight, brokers should try to figure out what types of products and distribution they do the best job with. That means they should turn down business once in awhile — “more” does not necessarily mean “better” when it comes to number of principals.

The role of the broker is changing, of course, with more large retailers wanting direct sales calls from leading vendors. And while many brokers can offer significant help with everything from merchandising to schematics, some retailers are listening less and dictating more. (Last month,

our cover story was on the evolving role of the broker.)

There are strongly diver-gent points of view here. Says one retailer, “We use brokers mostly for resets and having feet on the ground. They don’t really have any authority.” Counters another, “As a mid-size chain, we would have a very difficult time if it weren’t for the local brokers. We depend on each other for our livelihoods, and are partners in the truest sense. I think brokers are overworked and abused by manufacturers.”

Opinions are split also on whether small local brokers

will gain strength if local and niche brands become more important in the mix, especially among inde-pendents and regional chains. But will smaller brokers find it increasingly difficult to cobble together enough sales volume to survive, or will they just be taken over by larger companies? And if they bring along a niche brand to critical mass, will they get a notice in the mail saying, “Sorry, we’re switching to a national broker.”? Good question; most retailers say they love the smaller brokers, but aren’t betting on them. n

Look for ethnic offerings to gain in importance in both the frozen and refrigerated departments.

SPOTLIGHT: SEAFOOD


OTHER FISHTO FRYAs shrimp supplies dwindle, consumers opt for other, less expensive species, driving a 7.8% gain in fish/seafood dollar sales.

BY DENISE LEATHERS

A steep increase in commodity shrimp prices drove a 4.8% jump in total frozen fish/

seafood dollar sales during the 12 weeks ended Dec. 29. Despite a 3.3% decrease in unit volume and 2.9% drop in volume sold with merchan-dising support, sales across channels topped $970.7 million during the period, reports Chicago-based mar-ket research firm IRI.

At the subcategory level, shrimp dollars rose 2.1% to $494.24 mil-lion while units tumbled 10.9% and volume sold with merchandising support fell 9.5 percentage points to 35.6%. But the data suggests sticker-shocked shrimp con-sumers simply turned to oth-er, less-expen-sive species for their seafood fix. According to IRI, fish/seafood dollars shot up 7.8% to $476.47 million while units grew 3.6% and volume sold with merchan-dising support expanded 2.2 points to 30.3%.

“Shrimp is such a significant por-tion of total seafood sales that (its price volatility) will impact all areas of the store that it touches — multi-serve meals, soups, dips, etc.,” says

John Baxter, vp of retail/club sales and marketing at Baltimore-based Phillips Foods (www.phillipsfoods.com). “As supplies dwindle and prices increase, the seafood department will have to find new ways to make its numbers.”

FLAVOR IS HOT, HOT, HOTOne of the those ways is by expand-ing into bold new flavors, both exotic and homegrown. “New flavor profiles will be heavily influenced by the tastes of chiles, peppers and spices from around the globe,” says Jodi Nedrow-Counihan, vp of marketing at Gloucester, Mass.-based Gorton’s (www.gortons.com). In fact, she adds, bold flavors are the center-piece of the company’s new Artisan Fillets, large pieces of wild-caught Alaskan pollock flavored with herbs and spices like roasted garlic, chili and cracked peppercorns. Available varieties include Roasted Garlic & Italian Herb, Lemon & Cracked Pep-percorn, Southern Style, and South-west Tortilla.

Gorton’s competitor Van de Kamp’s (www.vandekamps.com), manufactured by Parsippany, N.J.-

based Pinnacle Foods, is also going bold, launch-ing a red- and black-pepper flavored “Spicy Recipe” variety of its new bun-sized Fish Sand-wich Fillets. According to COO Bob Gamgort, the introduction helped recast frozen seafood as a viable lunch-time option, not just a dinner item.

Another company embracing the global cui-sine trend in a big way is Gloucester, Mass.-based Matlaw’s (www.matlaws.com), part of the National Fish and Seafood family. Coinciding with its in-troduction of a new logo and website, the company

will roll out nearly two dozen new SKUs this month, including Bacon & Cheese, Chorizo, Chili Lime, Italian Herb, and New England Style Stuffed Clams; Crispy Cajun, Coconut, Bar-

becue and Original Popcorn Shrimp; Southwest Cod Fillets; Jalapeno Breaded Cod Tenders; and Southwest Tortilla Cod Portions.

“American consumers are clearly demanding more diverse flavor profiles, and there is growing interest in seafood that offers exciting new flavor combinations,” says regional sales manager Mark Pandolfo.

St. Simons Island, Ga.-based SeaPak Shrimp & Seafood Co. (www.seapak.com) is also jumping on

the bold flavor bandwagon, rolling out Parmesan Encrusted Butterfly Shrimp, “a savory, comfort-food twist on our original,” says director of marketing Daryl Miller. “We’ve seen growing consumer interest in adding more flavor and variety to mealtime,” he adds, “and we anticipate a desire for more international restaurant flavors at home.”

SNACKS, SOUP HEAT UPAlso the maker of Shrimp Spring Rolls, which debuted last year, Sea-Pak is one of several seafood manu-facturers looking for opportunities in other frozen categories as well. For example, Gorton’s rolled out a line of frozen fish “bites” under the Snack-Its sub-brand, while a trio of new seafood appetizers — fish taquitos, fish tacos and fish empana-das — from Commerce, Calif.-based Contessa (www.contessa.com) were recently spotted in the freezer case at select Walmart Supercenters.

Seafood manufacturers are also expanding their presence in frozen dips, where Phillips recently added

To help meet growing demand for fresh, refrigerated seafood, Phillips adds three new items to its heat-and-eat To Go lineup.

Gorton’s Artisan Fillets feature bold flavors like Southwest Tortilla and Lemon & Cracked Peppercorn.

SPOTLIGHT: SEAFOOD


two varieties: Honey Chipotle Shrimp and Boston Bacon Horseradish. After moving to a single-serve format that helped increase sales 30% over the past 12 months, the company is also increasing its frozen soup portfolio, add-ing Salmon Chowder and Seafood Cioppino to the mix.

“As we continue to grow our market penetration in ar-eas outside the East Coast, we need to satisfy a more ex-tensive consumer palate,” says marketing and packaging manager Rebekah Cady. “So we’re offering broader-based flavor profiles than Phillips is normally associated with.”

On the refrigerated side, Fall River, Mass.-based Blount Fine Foods (www.blountfinefoods.com) is expanding its Legal Sea Foods lineup with a larger size. According to sales and marketing vp Bob Sewall, 32-ounce containers of its two best sellers, Lobster Bisque and Clam Chowder, make it easier for families to enjoy the product at home. He adds that retailers should consider offering seafood soups

in the seafood department as well as in the grab-and-go deli section so consumers pick-ing up shrimp or cod as a main dish will be re-minded to pick up a soup course as well.

“It’s a great complement to so many other seafood purchases — and an easy add-on sale,” he remarks.

Blount isn’t the only manufacturer looking for op-portunities in the fresh case, where fish/herring/seafood

sales have risen 3.6% to $142.80 million dur-ing the most recent 12 weeks, according to IRI. For example, Phillips recently added three new items — Lobster Cakes, Lobster Mac and Cheese, and Tuna Burgers — to its refrigerated Phillips To Go collection.

Similar to what’s hap-pening in other catego-ries, “We see a strong push in the fresh case for heat-and-eat seafood offerings,” says Baxter. “We’re jumping deeper into the refrigerated grab-and-go area where consumers are craving new and different easy-to-prepare meal items.”

NEW COOKING TECHNOLOGIESAnother way manu-facturers are making seafood easier to prepare is through improved cooking technologies for frozen items. For example, Gorton’s cre-ated its Simply Bake line around a proprietary foil cooking bag that makes not just cooking, but clean-up, a snap, says Nedrow-Counihan. Now available nationwide, the

SEAFOODSales in supermarkets, drugstores, mass merchants, military commissaries and select club and dollar stores combined for the 12 weeks ended Dec. 29, 2013, according to IRI, the Chicago-based market research firm. Percent change is versus the same period a year ago.CATEGORY $ SALES % CHG UNIT SALES % CHG VOLUME % CHG

*FROZEN SEAFOOD $970,705,200 4.8 119,960,600 (3.3) 158,083,600 (2.7)FISH/SEAFOOD $476,467,200 7.8 67,600,020 3.6 101,030,200 5.5 Private Label $110,720,500 5.0 15,777,650 1.5 20,454,900 1.5 Gorton’s Corp. $64,166,050 1.4 12,384,370 0.9 13,555,700 0.1 Fishin Co. $34,713,290 22.4 3,863,704 15.0 10,300,940 14.2 Beaver Street Fisheries $31,933,390 17.9 3,575,533 11.9 8,656,968 10.0 Pinnacle Foods Group $30,916,230 3.0 6,121,053 0.8 7,660,453 7.1 Odyssey Enterprises $24,091,740 10.6 2,084,122 11.7 5,018,378 14.3 High Liner Foods $16,706,370 7.9 2,820,096 10.7 4,311,878 3.5 Atlantic Trading Co. $13,572,260 30.5 838,640 47.3 1,794,745 18.9 Great American Seafood Import Co. $11,284,930 13.4 1,447,352 26.9 2,882,875 10.6 Quirch Foods Co. $10,582,700 1.3 1,297,887 (2.0) 3,279,046 (4.9)SHRIMP $494,238,000 2.1 52,360,610 (10.9) 57,053,410 (14.4)Private Label $274,694,600 (1.2) 29,266,280 (15.3) 30,828,730 (19.1)Rich-SeaPak $33,492,780 5.8 4,724,902 (0.2) 5,432,334 3.6 Aqua Star $22,417,200 84.4 2,994,027 72.9 2,710,680 68.0 National Fish & Seafood $15,415,270 (29.1) 2,436,306 (29.2) 1,969,894 (36.7)Tampa Bay Fisheries $14,865,380 13.4 751,216 5.5 1,573,864 (8.6)Maple Leaf $10,452,930 (22.6) 506,010 (35.7) 954,816 (38.4)Beaver Street Fisheries $10,140,490 14.9 1,099,345 (12.2) 1,248,279 (5.7)Mazzetta Co. $8,100,801 64.0 529,545 34.7 704,830 29.3Gorton’s $7,203,730 (20.2) 1,178,056 (23.3) 907,470 (21.1)Tastee Choice $5,652,364 (29.4) 657,617 (26.1) 560,413 (43.8)RFG FISH/HERRING/SEAFOOD $142,804,200 3.6 25,952,070 1.0 17,740,700 (1.0)Private Label $19,108,150 6.3 3,927,974 (0.7) 2,191,422 (5.3)Trans-Ocean $11,336,350 11.7 4,289,585 9.4 2,476,233 10.0 Hilton $7,242,387 1.7 1,010,341 (2.1) 770,687 1.9 Paramount Reserve $7,174,762 9.6 506,136 (7.2) 507,715 (9.3)Vita $6,589,818 (7.1) 1,149,849 (8.9) 981,240 (3.3)Louis Kemp Crab Delight $5,075,311 (1.3) 1,851,269 (9.6) 1,407,821 (4.5)Acme $4,795,234 26.1 577,302 15.2 366,152 7.2 Echo Falls $4,393,783 8.3 617,310 8.5 154,347 3.6 Chicken of the Sea $4,261,175 0.3 342,519 3.2 268,964 1.4 Dockside Classics $2,936,906 16.4 456,559 24.4 340,443 24.3* IRI supplies the top 10 manufacturers, not brands, in this category.

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SPOTLIGHT: SEAFOOD


SEAFOOD. NOW. HERE’S WHY.Seafood is hot and getting hotter, and here’s how you can cash in.

BY CRAIG ESPELIEN

The time is right for a major push on seafood — not only for Lent but to take advantage

of the consumer’s desire for less red meat and lower fat proteins. By focusing on the benefits of seafood (portion control, basket growth and innovative uses via recipes), you can gain solid incremental sales. And by creatively merchandising the right products for your specific custom-ers, you can take share from your competitors.

STRONG OPPORTUNITY This article will discuss why the opportunity is so strong now for sea-food (versus other proteins) and how you can cash in. I’ll share ideas on which products to market to which consumer sets, how to increase bas-ket size and what to watch out for on quality. Let’s start with the reasons why seafood is such an opportunity for retailers today.

With most consumers stretched for time (working more hours to make ends meet) and under tre-

mendous economic pressure, price/value and convenience have become perhaps the most important factors in choosing one item over another or even one store over another. Additionally, there has been a huge push for people at all economic levels to eat healthy — more fresh, more local, less processed, lower in fat, etc. Enter seafood — one of the lean-est forms of protein available.

Our chart shows that seafood dollars are benefiting from both in-creased demand and increased cost. And it’s clear that cost increases on shrimp are coming through — espe-cially in the last 12 weeks.

The numbers also indicate a move to quicker solutions and lower cost products. Convenient processed poultry is up. Pot pie dollars are up, but category units are growing even faster. Dinner meal products — at least the ones targeted more towards center of the plate — are not as heav-ily promoted as the category overall.

Pizza, one of the most-promoted categories in the store, is the clear exception.

A recent study by the London-based Mintel Group shows that consumer desire for red meat is dropping — driven by escalating costs, questions about product safety and over-all health perceptions. (Can you say cholesterol?) While some 90% of consumers regu-larly purchase red meat, 39% purchased less in 2013 com-pared with 2012. The study notes that 10% purchased

more red meat and 13% purchased more pork.

Mintel pointed out that 58% of consumers say that increasing costs have influenced their decision to buy less red meat. Consumers also said

that red meat items lack innovation and portion control. Both of these factors are strong points for frozen seafood.

The confluence of cost increases, concerns about safety and overall health consciousness has created a true merchandising opportunity for seafood in general and private brand

The biggest seafood challenge is not availability — it is creating a knowledgeable customer base willing to explore new varieties and recipes.

Craig Espelien

line includes both Salmon and Tilapia.Category newcomer Bumble Bee Foods (www.bum

blebee.com), San Diego, is also using technology to overcome the fear factor. “Consumers told us they lack the confidence to prepare seafood at home like they do chicken or beef,” says vp of emerging categories Todd Newman. “So we knew we had to make it foolproof and super-convenient.” Its solution is a parchment pouch for four of the six items in its premium-quality SuperFresh collection, launched late last summer in the Northeast. The other two, both made with shrimp, are designed for skillet preparation, a technique most consumers are already comfortable with.

The other key attribute of the SuperFresh line is its quality. “Consumers eat two-thirds of seafood in restau-rants because they believe restaurants offer better quality fish than they can get [at the store]. So we knew we had to start with the highest quality, freshest protein available,” says Newman, citing the brand’s “Cleaned, Cut & Fresh

Frozen Within Hours” tagline. He adds that all Super-Fresh items are made with simple, all-natural ingredients and no preservatives — and they’re gluten-free, highlight-ing another hot trend in frozen seafood.

“We see a loyal and growing consumer base for great-tasting gluten-free products,” says Gorton’s Nedrow-Counihan. She adds that all 11 of the company’s Grilled Fillet products are GFCO-certified, giving consumers an added measure of confidence.

Dover, Fla.-based Tampa Bay Fisheries (www.tbfish.com) recently launched a gluten-free collection of its own, under the newly revised Singleton brand. Though plans to expand the line are already in the works, current offerings include Breaded Fish Sticks, Breaded Butterfly Shrimp, Crunchy Fish Fillets, Batter Dipped Pub Style Fillets and Popcorn Shrimp, reports vp of marketing Wyatt Howard.

“Considering that millions of Americans suffer from celiac disease and gluten intolerance, the market needs more appetizing gluten-free options,” he says. n

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MERCHANDISING: BREADSPOTLIGHT: SEAFOOD


seafood in particular. The biggest challenge is not avail-ability — it is creating a knowledgeable customer base willing to explore new varieties and recipes.

Most IQF seafood is packed in individual four-ounce portions, and those portions then go into different-size packages. This plays into the desire for portion control. —Value Consumers: The four-ounce individual portion is ideal for the value consumer (use of treated product is the norm) and for retailers’ 10 for $10 promotions. Be oppor-tunistic here and stock whatever is available from the sup-plier in terms of variety at the proper price point. When it comes to shrimp, stock the smaller sizes for this consumer. —Mid-Price Consumers: Most attractive here are one- or two-pound packages (four or eight individual portions) with either natural or treated product, depending on your consumer profile. —Premium Consumers: Go with one-pound natural product. This puts your best-quality foot forward. Sur-round your off-shelf display with spices, rubs, parchment paper and recipes to help maximize your basket ring. You can get even better product in the package by controlling which part of the fish is used. Center cuts are considered best; tail or neck pieces eat the same but have unique sizes and shapes.—Luxury: Whole salmon sides or high-end filets can work here, although this is usually reserved for the fresh seafood department (in which case the salmon sides will help your premium offering and build a positive image with your consumer). For shrimp and other shellfish, Vietnam is emerging as a great source. The larger varie-ties are more reasonably priced and quality is on par with China White or North American Brown shrimp. Black Tigers are still considered the best and most sought-after varietal.

As with any center-of-plate protein, an ideal way to enhance basket size is to cross-merchandise items that complement the seafood purchase. Display not just

spices, rubs and sauces, but utensils and other accompa-niments as well. A fish spatula is a minimum $10 ring, and a must-have for every cook who wants to prepare sea-food. Also consider grilling supplies (wood planks, wood chips, tongs, etc.) and side dishes. Help your customers

expand their capabilities by providing not just products, but solutions they can try and then build on. Finally, tie in kid-friendly items like fish sticks, fish portions or fish nuggets to create a complete family solution.

WATCH QUALITYWhile red meat has a pretty robust and widely accepted grading system, seafood is a bit more of the Wild West in terms of quality. There are essentially two types of seafood: natural and treated. Natural is self-explanatory, while treated (as in the poultry world) means the product has been pumped with liquid.

Treated is not as good as natural, and with treated you are never quite sure how much pump has been added. With most seafood processed in China, it behooves every retailer to review carefully the quality they get. Factories in China do not have the same type of oversight we have in the United States, and some product that is labeled as natural is actually treated. Regular and consistent testing protocols will ensure that you get what you contract for.

With shrimp, watch out for the IQF process. Shrimp should be run through the water bath only once and then quick-frozen. If someone tells you that a second trip through the water bath will give you a better product, look elsewhere for your supplier. The second water bath adds only water weight, and paying shrimp prices for water is not good business! n

By the Numbers A quick review of sales trends for seafood and related categories (IRI data for the 52 and 12 weeks ended 12/29/13). Private label and percentage of volume with merchandising support figures are for the 52-week period.

Category $ Gain/Loss Unit Gain/Loss $ Gain/Loss Unit Gain/Loss Share Mchdsng Total Frozen 0.81% <0.03>% 0.86% <0.03>% NA 39.38%Appetizers/Snacks <0.62>% <0.96>% <2.92>% <3.22>% 6.10% 36.00%Pizza 0.33% <0.03>% 1.76% 0.12% 10.40% 48.00%Pot Pies 7.59% 8.62% 7.35% 13.61% <.05% 36.00%Poultry 1.97% <0.20>% 3.18% 2.22% 25.70% 31.00%Poultry - Processed 3.80% 1.35% 1.91% <0.64>% 20.10% 35.00%Dinners/Entrees <2.87>% <2.61>% <1.85>% <1.69>% 2.40% 39.00%Seafood 5.84% 2.66% 7.82% 3.55% 23.90% 36.00%Shrimp 2.60% <2.28>% 2.14% <10.87>% 56.40% 36.00%

PRIVATE % VOLUME52 WEEKS 12 WEEKS LABEL ANY

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SPOTLIGHT: ASIAN


ASIAN FOODSARE ‘HOT TREND’As one expert puts it, ‘a new wave of Asian flavors (and menu items) is upon us.’

BY DAN RAFTERY

America’s chefs are bullish on Asian foods, according to the “What’s Hot in 2014” report

recently released by the National Restaurant Association (www.res taurant.org), Washington D.C. More than half of 1,283 chefs surveyed last October cited several Asian cuisines as “hot trends.”

Korean and Southeast Asian (e.g., Thai, Vietnamese and Malaysian) were ranked Nos. 2 and 3, respectively, among the 16 cuisines in the survey. (Peruvian cuisine barely edged out the Asian categories — the only two in the survey.) “Regional ethnic” and “ethnic fusion” were ranked fourth and fifth, and both could certainly involve Asian foods.

‘HIPSTER ASIAN RESTAURANTS’High-end restaurant consultants Baum + Whiteman LLC(www.baumwhiteman.com), Brooklyn, N.Y., pick “Hipster Asian restaurants” as a hot trend to watch in 2014. Writing in his annual “12 Hottest Food & Bever-age Trends for Restaurants and Hotel Dining for 2014,” Michael Whiteman predicts “A new wave of Asian flavors (and menu items) is upon us.” As proof, Whiteman notes that Friday’s offering of sriracha aioli and kimchee has gone mass market and now can be found “on pizza, burg-ers and oysters and in grits and tacos.” Sounds like fusion to me.

Chicago-based Technomic, (www.technomic.com), the foodservice research and consulting firm, offered some behind-the-scenes insight into the Asian food trend. Last November, it published “10 Trends for 2014,” predicting that chicken and pork — both Asian protein staples — will be used more due to rising prices for beef.

Technomic also notes that consumers’ palates are fancying more foods that are pickled, fermented and sour, also Asian favorites. “Korean kimchee as well as pickled onion, jalapeno, ginger, radish and more are showing up everywhere from ethnic eateries to burger joints,” accord-ing to its 10 Trends report.

“The proliferation of Asian restaurants and Asian food

items on mainstream restaurant menus is likely related to the increase in immigration from Asian countries in recent years,” says Scott Corey, director of marketing, Kahiki Foods (www.kahiki.com), Gahanna, Ohio. “This is starting to impact food trends in the United States. Con-sumers are looking for convenient ways to replicate these experiences at home in their kitchen.”

Kahiki is introducing a new line of all natural Asian meals for two called StirFresh. The line consists of five flavors: General Tso’s Chicken, Sweet & Sour Chicken,

Beef & Broccoli, Or-ange Chicken and Garlic Shrimp with Vegetables. Each meal is prepared on the stovetop (skillet or wok) in fewer than 12 minutes and includes white meat chicken, beef and shrimp with no preservatives, no artificial flavors and no MSG. The meals have packets of sauce so consum-ers can customize meals with the

amount that is right for them. SRP is $7.99. “Here at Saffron Road, we do most of our research on

the street, whether it be at restaurants or now especially food trucks” says Jack Acree, executive vice president, Saffron Road Foods (www.saffronroadfood.com), Stam-ford, Conn. “We can see a regular pattern of cuisines moving from these venues into the supermarket. Thai has been bubbling for a long time and is now proving itself with items like our Chicken Pad Thai. We see Korean as the next hot cuisine. Hibachi-style restaurants have more than doubled; then there is the explosion of Korean Taco trucks. We look to tap into that market very soon.”

KOREAN TACOS “We are about to launch a line of new Korean entrees and Korean tacos,” says Acree. “For now, that’s all I can say, but it’s going to be groundbreaking and very exciting to the consumer market.”

“Asian food has been on an upswing for some time now, and will continue to increase for many years as people expand from traditional Northern Asian cuisines (Chinese, Japanese) to exciting new Southeastern Asian (Thai, Malaysian, Vietnamese, Filipino) entrees – first at restaurants and now coming to retail,” says David Weinberg, director of marketing, Day-Lee Foods (www.day-lee.com), Santa Fe Springs, Calif.

He adds that the company’s new Crazy Cuizine Sweet Chili Chicken provides the ‘sweet heat’ that consum-

Day-Lee’s new Crazy Cuizine Sweet Chili Chicken provides the ‘sweet heat’ that consumers want, according to the company. The entrée goes from freezer to table in less than 20 minutes.

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SPOTLIGHT: ASIAN


ers want. “A popular condiment for several years now, Sweet Chili gives consumers the spice they crave in a chicken entrée,” he says. The new product goes from freezer to table in less than 20 minutes, is popu-lar with kids and is the “at-home answer to Chinese or Thai takeout,” Weinberg says.

MERCHANDISING TIPS“We have found that retailers that are combining their Asian meals and appetizers together in one area of the frozen section ultimately see increased velocities,” says Kahiki’s Corey. “Consumers add Asian-com-plementary items to their shopping

cart, such as fried rice, egg rolls, spring rolls or lo mein when these items are adjacent to their main meal selection. Retailers that have adopted this merchandising strategy have improved their overall category performance.”

“Don’t segment new cuisines so that consumer’s can’t find them,” cautions Pearson of Saffron Roads. “Frozen is flat or down because of a lack of cuisine innovation, as it is clear that technological innovation has not excited the consumer. By car-rying well-made attractive and exotic foods, consumers will be excited to try them.”

“What the millennials and many

other demographic groups want is customization,” says Day-Lee’s Weinberg. “Look at the success of Chipotle, and now their Asian version in Los Angeles called ShopHouse. Retailers can and should copy that model. Pair frozen Asian appetizers, entrées, and rices together in one loca-tion so consumers can mix and match and customize a complete Asian meal without shopping all over the freezer or store. Make it easy to do an Asian dinner night. Suggest recipes and meal solu-tions that go beyond center of the plate options. Crazy Cuizine is developing a whole new set of additional serving suggestions for its products — recipes that will help busy consumers more easily answer ‘what’s new and different for dinner tonight?’” n

Dan Raftery is president of Raft-ery Resource Network and a trum-pet hobbyist. He can be reached at [email protected].

TOFU PICKS UP SPEEDLong popular in Asian cuisine, tofu is learning new tricks and offering new opportunities.

BY ADRIENNE NADEAU & NICK LEWAND

Tofu has been a staple of East Asian cuisine for a thousand years, but now it is gaining popularity as an alternative protein in American restaurants. Chipotle, for example, is attempting to pull vegetable proteins from the mar-

gins into the spotlight with its new Sofritas offering. It is betting that tofu-based Sofritas can stand on its own merits and engage the appetites of vegetarians and omnivores alike.

Chipotle is really doing this right. Typically, when meat alternatives are offered by mainstream restaurants, they’re haphazardly thrown into builds with flavor profiles designed around the altogether different characteristics of animal protein.

While Chipotle is a strong brand name, it is certainly not the only one opting for alternative proteins. Due to tofu’s popularity in Eastern cuisine, many options re-volve around Asian flavor profiles, particularly in ready-made frozen dinners. Several frozen food companies with an organic focus or a healthy slant are already on the forefront of the tofu trend.

Though only about 5% of Americans identify as vegan/vegetarian, wider consumer acceptance of tofu or other vegetable proteins, such as seitan or tempeh, could un-lock an option that is healthier than animal proteins. Both already have rich histories in popular ethnic cuisines. Many Chinese and Japanese dishes, in fact, already com-bine tofu and animal proteins in the same dish, which may be enough to convince the hesitant omnivore.

Here are some Asian dishes with tofu at the forefront. • Mapo Tofu (Sichuan): A spicy dish of tofu, meat and Sichuan peppers.• Taho (Philippines): A sweet snack of silken tofu, brown sugar and sago pearls.• Bacem (Indonesia): Coconut milk-marinated tofu, which is then deep-fried.• Hiyayakko (Japan): Tofu drizzled with soy sauce and ginger.• Kimchi Tofu (Korea): Sliced tofu with sautéed kimchi.

Adrienne Nadeau and Nick Lewand are senior analysts at Technomic (www.technom ic.com), the Chicago-based consulting and research firm serving the food industry.

Kahiki debuts all-natural Asian meals for two called StirFresh, available in five flavors. Meals are prepared in a skillet or wok. SRP is $7.99.

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SPOTLIGHT: DINNERS/ENTREES


DINNERSDIP 1.9%But manufacturers say cleaner, better-quality meals could bring consumers back to the frozen department.

BY DENISE LEATHERS

Frozen dinner and entrée dollars were just short of $1.97 billion across channels during the 12 weeks ended Dec. 29, down 1.9% from the year-ago

period, reports Chicago-based market research firm IRI. Although the handheld segment rose 3.2% to $544.56

million, both the single-serve (-3.8% to $940.40 million) and multi-serve (-3.4% to $483.22 million) subcategories continued to struggle.

During a recent earnings call, Pinnacle Foods CEO Bob Gamgort attributed the slump to a lack of innova-tion, the weak economy (ready-to-cook meals cost more

per-serving than home-made) and, perhaps surprising to some, too much variety. “There’s just a tremen-dous amount of assortment there, and there’s a lot of confusion as well,” he explained. But manufacturers we talked to put the blame squarely on less-than-premi-um quality.

“People are concerned about what’s going into

their bodies,” says Joe Keip, vp of retail sales at Austin, Texas-based Michael Angelo’s (www.michaelangelos.com), which recently began placing key nutritional infor-mation on the front of its packages.

“They want real food, real ingredients — clean labels with nothing on it that they can’t pronounce.” And while low-cal “diet” foods are an important niche, that’s not the goal. “We’re never going to be a low-cal provider, but we do the absolute best we can as far as using only top qual-ity, natural ingredients, eliminating preservatives and

reducing sodium,” he explains. The company continues to experiment with ways to boost the better-for-you quo-tient — without sacrificing taste. For example, says Keip, it recently introduced vegetable lasagna with kale for its club store clientele.

FOCUS IS ON QUALITYKeeping the focus on quality is already paying off for Boynton Beach, Fla.-based Momma B’s (www.momma bsmacandcheese.com), which debuted a line of premium mac ‘n cheeses last summer. After just six months, says Hope DeLong, who handles sales and marketing, the product is in 2,700 stores nationwide. “That really speaks to the need for prod-ucts like ours,” she remarks. “Buyers have been very impressed with the quality, the texture, the homemade taste. They tell us it’s drawing shoppers from the perimeter of the store to the frozen department where many ‘quality-minded’ consumers don’t normally shop.”

Phil Anson, COO and founder of Boulder, Colo.-based EVOL Foods (www.evolfoods.com) adds, “The frozen segment is in trouble because the legacy brands that built this category are no longer relevant as far as where food is in this country today. They’re full of preservatives, sodium and artificial ingredients, and that’s cast a nega-tive light on (frozen meals).” He believes the only way to turn things around is to offer more products with clean ingredient decks. In fact, he says, “We believe all-natural

represents the future of the food in the freezer.”To expand the number of clean-ingredient, natural

offerings in the department, EVOL recently rolled out 10 new frozen entrees, including four Lean & Fit meals, each low in fat and under 300 calories. The company also debuted six skillet meals for two, marking its first

Michael Angelo’s introduces ‘large family’ size entrees that serve five to six. New packaging features key nutrition information on the front panel.

Momma B’s adds Chicken Biscuit Pie to its line of premium-quality comfort foods. Manufacturers we talked to put the

blame for declining entree sales squarely on less-than-premium quality.

SPOTLIGHT: DINNERS/ENTREES


foray into the multi-serve segment. While the collection boasts plenty of ethnic flair (Thai Style Curry Chick-en, Chicken Tikka Masala and Chicken Tandoori, to name a few), it also includes Uncured Bacon Mac & Cheese, highlighting the growing popularity of comfort foods — often with an upscale twist.

For example, Momma B’s mac and cheese lineup includes both Pepper Jack and Truffle varieties in addition to Homestyle. The company’s new chicken pot pie — another traditional favorite — also represents a slight departure from the original, says DeLong, citing its buttermilk biscuit crust. “So it’s not the same old, same old.” According to IRI, dol-lar sales of frozen pot pies jumped 7.3% during the most recent 12 weeks to $131.41 million across channels.

Santa Rosa, Calif.-based Amy’s Kitchen (www.amys.com) is also tapping the comfort food trend, adding Macaroni & Cheese and Meatless Swedish Meatballs to its single-serve Light & Lean line, which now includes 16 different meals with fewer than 300 calories and 6 grams of fat or less.

At the other end of the size spectrum, Aurora, Ill.-based On-Cor (www.on-cor.com) recently added two types of macaroni and cheese — original and with bacon — to its new 60- to 75-ounce Deluxe Party Size lineup. “Comfort food is still a major force,” says vp of sales Fred Martino. “And these items not only meet the needs of consumers with large families, they’re perfect for serving at parties.” Also offered in Deluxe Party Size: Lasagna with Meat Sauce, Meatballs in Mari-nara Sauce and Meatballs in Barbecue Sauce.

Michael Angelo’s is also adding a larger size to its

lineup, says Keip. Now referred to as “large family size,” the 44- to 46-ounce collection fills a gap between regular “family size” (28 to 32 ounces) and “party size,” offering five to six servings per package.

HIGH-TECH PREPAnother important category trend is new packaging/cooking technologies that make preparation easier and re-sult in a better quality product. For example, new single-serve Bertolli Al Dente meals from Omaha, Neb.-based ConAgra (www.conagrafoods.com) feature the company’s popular tray-in-tray steam cooking method — similar to what it already uses for some of its Healthy Choice and Marie Callender’s meals. In addition, the company debuted 10 stuffed pasta meals for one and two under the new Bertolli Rustico Bakes la-bel that come in a MicroRite tray that reportedly heats more evenly and gives food a “baked” taste. (ConAgra also added new varieties to both its Bertolli and P.F. Chang’s skillet meals lineups.)

Another company using a new packaging/cooking technology is Atlanta-based Luvo (www.luvoinc.com), previously known as LYFE Kitchen, whose bet-ter-for-you single-serve entrees steam cook in patented paper pouches mod-eled on the classic French en papillote technique. According to the com-pany, its approach helps lock in flavor and moisture and preserve nutrients while also minimizing packaging.

New additions to the line, all of which contain fewer than 500 calo-ries and 500 mg or less of sodium, include Turkey Meatloaf, Thai Style Green Curry Chicken, Tandoori Spiced Chicken, Sweet Potato & But-ternut Squash Enchiladas, Quinoa &

Vegetable Enchiladas, Chicken Enchiladas, Kale Ricotta Ravioli, Spinach Ricotta Ravioli, and Red Wine Braised Beef & Herb Polenta.

ConAgra expands its Bertolli lineup with two new sub-brands, Rustico Bakes and Al Dente, and adds three varieties to its flagship skillet meals for two collection.

On-Cor jumps on the mac and cheese trend, adding two varieties to its new Deluxe Party Size lineup.

Luvo debuts nine new single-serve meals that steam cook in patented paper pouches.


In addition to new cooking technologies, frozen din-ner manufacturers are experimenting with new forms and formats, especially hand-held options. While frozen burritos are already well estab-lished, Nestlé-owned Lean Cuisine (www.leancuisine.com), Glendale, Calif., is taking a slightly different approach to the popular product. Building off the success of its Salad Additions, the company recently debuted a pair of Wrap Additions

that allow consumers to combine microwave-ready chicken and vegetables with their own fresh tortilla.

Available varieties include Chicken Teriyaki and Creamy Balsamic Chicken. n

FROZEN DINNERS/ENTREESSales in supermarkets, drugstores, mass merchants, military commissaries and select club and dollar stores combined for the 12 weeks ended Dec. 29, 2013, according to IRI, the Chicago-based market research firm. Percent change is versus the same period a year ago.

CATEGORY $ SALES % CHG UNIT SALES % CHG VOLUME % CHG

DINNERS/ENTREES $1,968,179,000 (1.9) 712,028,900 (1.7) 631,951,500 (1.6)

SINGLE-SERVE DINNERS/ENTREES $940,401,900 (3.8) 443,621,900 (3.4) 285,430,300 (3.2)Stouffer’s $121,918,200 (4.1) 46,685,080 (1.5) 36,730,000 (0.1)Banquet $74,727,330 (4.2) 73,816,170 (3.6) 38,320,940 (3.9)Marie Callender’s $73,229,950 (2.6) 28,199,480 0.6 24,718,550 0.8 Weight Watchers Smart Ones $71,442,660 (13.4) 33,203,160 (13.9) 19,017,510 (15.3)Stouffer’s Lean Cuisine Culinary Collection $51,156,720 (2.7) 19,027,440 (0.9) 10,750,260 (0.5)Stouffer’s Lean Cuisine Simple Favorites $47,765,520 (5.9) 23,032,590 (1.2) 13,938,670 (1.2)Hungry Man $31,067,640 4.1 11,567,630 4.8 11,451,220 4.8 Healthy Choice Café Steamers $27,531,250 46.3 11,089,250 58.5 7,055,878 56.9Hlthy Choice Top Chef Café Steamers $24,651,190 15.2 10,109,120 24.3 6,393,386 24.4 Healthy Choice $21,447,060 (51.9) 9,000,839 (52.9) 5,831,417 (50.7)

HNDHLD ENTREES (NON-BREAKFAST) $544,555,500 3.2 189,206,800 3.9 172,947,400 3.9 Hot Pockets $151,574,800 7.4 43,671,560 6.2 44,440,730 8.5 El Monterey $65,076,840 6.3 20,899,060 0.9 36,148,100 5.9 Lean Pockets $35,828,860 (5.5) 15,886,830 3.1 9,808,720 (3.9)State Fair $32,068,300 (12.9) 5,508,551 (1.7) 11,436,010 (11.5)Smucker’s Uncrustables $29,335,820 18.7 5,949,238 12.1 5,791,216 20.8 White Castle $26,225,670 3.4 4,733,956 1.1 4,253,335 5.1 Foster Farms $22,348,360 13.4 3,689,264 10.8 9,991,964 15.1 Private Label $21,054,810 (5.6) 10,035,370 4.7 6,193,759 (0.7)José Olé $13,523,450 1.5 9,721,518 (3.6) 4,678,376 (3.5)Amy’s $12,563,120 18.2 4,739,390 19.1 1,715,409 18.9

MULTI-SERVE DINNERS/ENTREES $483,221,600 (3.4) 79,200,290 (4.2) 173,573,800 (3.9)Stouffer’s $188,707,300 7.0 25,201,180 7.0 74,608,760 3.2 Birds Eye Voila! $51,026,810 5.0 11,205,820 1.9 17,973,840 6.7 Bertolli $39,728,620 0.4 5,931,635 0.4 9,289,244 (0.5)Private Label $30,087,780 0.3 4,101,513 2.1 11,984,240 4.8 P.F. Chang’s Home Menu $25,358,020 (9.5) 3,299,104 (10.7) 4,569,384 (11.1)Marie Callender’s $19,138,210 (23.9) 3,282,438 (19.3) 7,460,067 (23.2)Banquet $14,678,670 (5.0) 4,971,800 0.0 8,344,834 (2.1)Michael Angelo’s $13,774,910 (12.9) 1,498,230 (15.4) 3,736,596 (12.8)Gourmet Dining $10,781,670 (4.0) 2,193,466 (10.6) 3,950,672 (15.5)Stouffer’s Easy Express Skillets $6,088,898 (58.6) 1,475,985 (58.3) 2,204,939 (59.0)

Comfort foods — often with an upscale twist — are increasingly popular.


LOGISTICS

TEAMING UP ON‘FORWARD HAUL?’Pilot program shows that CPGs can efficiently collabo-rate on vendor-to-retailer shipments. Industrywide use could include frozen and refrigerated foods.

BY MICHAEL GARRY

Can trading partners collaborate on “forward hauls” from vendors to retailers? The idea has been kicking around for a long time with little real

progress, but that may be changing. Pleasanton, Calif.-based Clorox Services Company is

conducting a pilot with two other CPG firms and one national retailer to test and learn about the joint value creation and other benefits that can be gained, says Mark Hersh, director, supply chain strategy at the company.

3 CPGS, 1 RETAILERClorox and the two CPGs are jointly shipping their products together on the same truck (using a third-party carrier) to five distribution centers belonging to the national retailer in a single geographical region. Each manufacturer operates a regional DC in proximity to the others.

“We looked at which manufacturers had DCs in close proximity to our regional DCs and which ship to com-

mon retailers,” Hersh says. “We landed on a few that saw this as a strategic capability, and picked a retailer to pilot this concept.” (He did not name the CPGs or the retailer.) Clorox is recruiting other manufacturers in the area to join its initiative and is also talking with poten-tial CPG partners for its regional DCs elsewhere in the United States.

The company worked with Atlanta-based CHAINa-lytics (www.chainalytics.com) to identify potential partners, and brought in 3PL firm Transplace (www.transplace.com), Frisco, Texas, to manage the opera-tional aspects of the pilot. Hersh identifies one of the barriers to a multi-manufacturer shipping collaboration as not having a 3PL like Transplace to “operationalize it,” and credited Transplace with “helping to make this successful.”

The pilot started in mid-2012 at one of the retailer’s DCs and continued for four months. The initial test “had great success” and the retailer and manufacturers decided to expand the pilot to multiple DCs, Hersh explains.

Clorox is shipping a full line of its products in the pilot. While this pilot did not involve any frozen or refrigerated products, the collaboration model is scalable and can work regardless of the product type, Hersh says. Co-shipping, he notes, works best with up to three to four manufacturers located near each other. “More than that and it becomes hard to orchestrate.”

The first of the retailer’s DCs chosen for the pilot is small and had some opera-tional inefficiency in regard to accommodating the large shipments that Clorox and the other CPGs had been deliver-ing. In the pilot, unloading and DC efficiency improved, inventory levels came down and on-shelf availability at stores increased, he says.

“We found the DC could become much more efficient getting shipments from all three companies in the same truck more frequently versus each individually with larger quantities,” Hersh notes. “It allows the retailer to be more efficient getting product on the store shelf.”

IMPROVED IN-STOCKThough Clorox has not yet unlocked significant transpor-tation savings through the pilot, Hersh believes that will happen after “we become more efficient at putting loads

together,” the retailer’s ordering system “be-comes a little more sophisticated” and the pool of shippers grows. Meanwhile, Clorox and the other CPGs are benefiting from im-proved in-stock levels at the retailer’s stores.

Transportation collaboration projects like Clorox’s are far more common in

Europe than the United States, where they have had a checkered past. Still, Clorox and its partners are trying to make it work. “If you can find the right shipping partners and retailers where joint value exists and a third-party to help operationalize it, you have a winning combination,” Hersh says. n

JOINT EFFORTS SPOTTY SO FARLong-term promise seen, but so far transportation col-laboration has produced only small wins.

More than a decade ago, the Food Marketing Institute and the Grocery Manufacturers

Association called for more transportation collabora-tion by manufacturers and retailers in a document dubbed the “Manufacturer & Distributor Customer Pick-Up/Backhaul Fairness Statement.”

The statement focused on “backhaul” shipments by

Mark Hersh

In the pilot, unloading and DC efficiency improved, inventory levels came down and on-shelf availability at stores increased.

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LOGISTICS

trucks returning to a distribution center after dropping off a load. It recommended that trading partners form a joint team to manage backhaul.

In the ensuing 10 years, despite the plug from the in-dustry’s two major trade groups, transportation collabora-tion efforts — whether backhauls or “forward hauls” from

CPG firms to retailers — have been spotty. Still, the notion of becoming more efficient and cutting transportation costs through company partnerships remains a compelling goal, if a hard one to execute, for many trading partners.

ANOTHER TRYLast year, FMI, GMA and the Consumer Goods Forum decided to give it another try, launching an ambitious indus-

try initiative — the Collaborative Logistics Benefits & Feasibility Assessment — to identify opportunities for re-tailers and manufacturers to share transportation loads.

The initiative, which sought out a broad group of trading partners, ended up with four retailers (Kroger, Wegmans, Price Chopper and Meijer) and 10 CPG firms (Colgate Palmolive, Dannon, GLK Foods, HJ Heinz, JM Smucker, McCor-mick, Nestlé, PepsiCo, SC Johnson and Unilever). Each paid $12,000 to be in the initiative. The companies provided transportation data to Atlanta-based CHAINalytics (www.chainalytics.com), which determined whether they had any overlapping transportation needs.

So far, the companies participating in the initiative have managed only small wins with backhauls, generally with their private fleets, says Gary Girotti, vp, supply chain intelligence and technol-ogy products, CHAINalytics. “There’s certainly been a lot of communication between companies but they’ve not found a lot of huge wins. It’s been fairly disappointing.” However, the companies are continuing to work together to pursue identified backhaul opportu-nities, though CHAINalytics is no longer analyzing data from the participants, he notes.

The initiative may have faltered, Girotti says, because of the softness in the third-party carrier market over the past three years, which has made transportation capac-ity easily available. Over the past three months, however, carrier capacity has tightened up for refrigerated ship-ments, he adds. “We see these initiatives become active when shippers struggle to get carrier capacity.”

“Transportation capacity sharing initiatives have blossomed up and (then) gone defunct over the years — too labor intensive is my guess,” says Jeanne Igle-sias, senior director, industry affairs and collaboration, Grocery Manufacturers Association. “But I do believe it is the future.” n

—Michael Garry

HENNINGSEN EXPANDING IN PORTLANDHillsboro, Ore.-based Henningsen Cold Storage has be-gun construction on a 2.7 million-cubic-foot expansion of its Portland, Ore., operation.

Originally built in 2008, the facility serves as a central-ly located distribution center and manufacturing support facility for many companies requiring frozen and refrig-erated warehousing services in the Pacific Northwest.

With quick on/off access to Interstates 84 and 205, Henningsen’s Portland operation is the most conveniently located multi-temperature shipping and receiving point in the Portland metropolitan area for customers and car-riers, according to the company.

“We are simply staying ahead of the curve with our

customer growth,” says Michael Henningsen, chairman and president. “We built the first phase of the Portland facility with expansion in mind.”

The site was pad-ready for the expansion, thus enabling the project to be completed very quickly. The new space will offer multiple rooms, with both frozen and refriger-ated capabilities, and will add another 13,000 pallet posi-tions to the operation.

Upon completion in May, the Portland operation will offer 7.9 million total cubic feet of space, and more than 30,000 pallet positions to the market. n

Gary Girotti

The 2.7 million-cubic-foot expansion will add another 13,000 pallet positions to the operation.

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GETTING PEERSONAL

PLAYING THE‘RYDER CUP’Chobani’s Kyle O’Brien actually does play in the Ryder Cup. And this year’s tournament is in Italy.

BY WARREN THAYER

When Kyle O’Brien tells me he plays in the Ryder Cup, I figure he’s kidding. And he is, sort of.

The Chobani sales executive does play on an American golf team that competes on a regular basis with Europe-ans, traveling from continent to continent for tourna-ments. But he plays in the “Winona Ryder Cup,” which is named after the acclaimed actress.

That sounds odd, so I key it into Google. One of the first items that comes up is “Winona Ryder Cup size,” which turns out to be a C. But let’s not go too far astray here. Just go to the Winona Ryder Cup site on Facebook. That’s Kyle’s group.

THIS YEAR: ITALY“We’re playing in Italy this year,” Kyle says. “Since 2003, we’ve played in France, Ire-land, Scotland, Hilton Head, Virginia — all over. This was started by two mutual friends — one from London and one from the United States — who wanted to do a Ryder Cup competition. But the name was already taken, so they decided to call it the

Winona Ryder Cup. They began asking buddies and soon there were random teams of 12 Euro-peans and 12 Americans. One of the guys knew me, and asked me to join.”

The first annual Winona Ryder Cup tournament was at Harbour Town Golf Links in Hilton Head, S.C. According to the Facebook site, “It was to become the start of an event that would create

great friendships and competitive rivalries. The event has grown more than the founding members would ever imagine and has become a ‘must attend event’ in every-one’s calendars — the last bank holiday in May every year, when dreams come true… or are shattered to pieces!”

Kyle says the camaraderie is great, with life-long friendships among people from different continents, cul-tures and indus-tries. “We wear different shirts each day, and dif-ferent hats. It’s a really incredible, fun group.”

When he’s not playing golf or selling yogurt, Kyle likes biking and rooting for the Boston Red Sox. He lived briefly in Boston during his radio career (no kidding) years ago before getting into the food business.

He’s also active with a variety of charities, includ-ing the Special Olympics, American Heart Association and the Big Brother Big Sister Foundation. Kyle spends a lot of time focusing on kids, encouraging them to go

after their dreams. He’s among the Chobani group in Charlotte that belongs to the North Carolina Special Olym-pics chapter. Members bring product to events, and serve as huggers at the finish line.

“Everybody volunteers and wants to be a part of it — these young athletes just amaze me,” he says.

Inspiring youth to be active and succeed at their goals is high on Kyle’s list — he’s a fre-

quent speaker at groups working toward this goal. He also carries his enthusiasm into the Chobani organization.

“I’ve been to many trade shows over the years. I didn’t want Chobani to be like the ones that go across the coun-try, party all night and wind up hung over at the booth the next day. Not that I don’t like to party — I do. But you should enjoy your work. Your job is a stage.”

‘BOOT CAMP’So he invented “boot camp” for Chobani workers when they are on the road for trade shows. He’ll hire a trainer or two, and everyone will team up with a partner for a 45-minute intensive workout at the start of the day.

“It gets the blood flowing, and really gets people fired up and working together,” Kyle says.

At least so far, there are no plans to tie “boot camp” into the Winona Ryder Cup. But you never know. n

Winona Ryder

Kyle O’Brien (aka KOB), left, and two good friends take a time out at a Winona Ryder tournament being played in Bend, Ore.

Winona Ryder Cup teams from Europe and the United States gather for a photo at a tournament in Kings Mill, Va.

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